Saudi Arabia’s Energy Minister Khaled al-Falih (L) talks to the press on the sidelines of the 176th meeting of the Organization of the Petroleum Exporting Countries (OPEC) conference and the 6th meeting of the OPEC and non-OPEC countries on July 1, 2019 in Vienna, Austria.
JOE KLAMAR | AFP | Getty Images
There’s only so much that OPEC and its oil-producing allies can actually do in a world filled with “factors beyond their control,” Citi’s Global Head of Commodities Research Ed Morse told CNBC.
The U.S. trade war with China and the resultant slowing global economy, sanctions on Iran’s oil sector and political turmoil in Venezuela and Libya, are all combining to destabilize crude markets. And these factors that are decisive in the direction of the oil price, are largely beyond OPEC’s control.
“What continues to drive the OPEC+ countries is their vulnerability to low prices and less-than-adequate revenues. Their actions are largely defensive,” Morse told CNBC Tuesday.