The oil-price war is not over – it's just on hold

Both Opec and Russia have agreed to restrict oil output by ten million barrels per day from next month. But the oil price war isn't over yet.

Opec looks just as dysfunctional as before the deal © Getty

“The short, violent oil war of 2020” is over, says Noah Rothman in Commentary magazine. Producers led by Saudi Arabia and Russia launched an all-out contest for market share last month, triggering a supply surge amid historic virus-induced demand destruction. Yet with prices plunging to 18-year lows of $23 a barrel the pain proved too great.

Producers in Opec, the oil exporters’ cartel, along with Russia (“Opec+”) have now agreed to restrict output by ten million barrels per day (mbpd) from next month, about 10% of global supply. Norway, Canada, Brazil and the United States should deliver five million mbpd in additional cuts.

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Markets editor

Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019. 

Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere. 

He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful. 

Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.