A couple of weeks ago, we covered the surprise decision by OPEC (or China…) to cut oil production. The production cut has yet to see crude oil prices surge, but has so far seeming stabilized prices around 75-80 USD/barrel. For more on that, follow our Energy Cable series!

The immediate analysis was centered around Beijing’s decision-making. Why would Beijing allow or even encourage the Saudis to cut oil production, when China is in the middle of an upswing fuelled by the Covid re-opening? Our assessment was that the balance between securing cheap for the oil market and annoying the Americans simply shifted a bit for Beijing – perhaps also in an attempt to alleviate budget concerns in Moscow. To put it simply – China loves cheap oil, but they love making the Americans squirm even more! And now, we are beginning to see the American response.