Saudi Arabia unwilling to reduce oil production alone

There is rise in today's oil price as Saudi Arabia appears to put forward a new proposal to reduce OPEC production by 1 mn barrels per day in 2016.

This could prove to be premature, as Saudi Arabia also wants "in return" is for the other OPEC countries to join it in reducing the production. One main objective is to increase discipline within the cartel.

One more thing it wants is for non-OPEC countries to curtail their production, which is unlikely. The lower non-OPEC production of Saudi will however be not achieved, notes Commerzbank.