Saudi Arabia softening opposition to OPEC deal extension

Saudi Arabia has continued to comply with its side of November’s OPEC agreement and recent comments from policymakers suggest that the Kingdom’s opposition to extending the deal beyond June is easing. While this increases the chances of the deal being rolled over, poor compliance from Russia and signs that US shale output is picking up mean that there are still significant hurdles to overcome and the Kingdom is likely to resist any calls for more aggressive action.