Concerns about a slowdown in global oil demand remained a key check on oil prices Friday, despite a decision by major oil producers to cut additional barrels next month from their production quotas.
Richard Soultanian, NUS Consulting's Co-President said:
"First, will the additional cuts materialize when historic compliance within the group has been weak. Second, how much longer will Saudi Arabia be willing to shoulder the majority of the group's productions cuts now that the Aramco issuance has been completed?"
"With additional production coming to market in 2020 from non-OPEC+ members, the group's resolve and cohesiveness are going to be tested in the first half of the year"
The oil giant [Aramco] priced its IPO Thursday at 32 riyals per share, valuing the company at $1.7 trillion. Trading is expected on the Saudi Tadawul stock exchange next week.
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