OPEC+ drama ensues, Saudi-China currency swap

The surprise delay to the OPEC+ meeting to next week has only added to speculation that the slide in oil prices in recent months and the backdrop of the Israel-Hamas conflict could prompt the group to cut its output quotas further. However, tensions within the group muddy the waters further as to who would shoulder the brunt of any reduction. Meanwhile, the agreement between the Saudi Central Bank and People’s Bank of China to open a local currency swap agreement adds to the evidence that Riyadh is gravitating into Beijing’s sphere of influence.