Oil turned lower after Kazakhstan said it will prioritize national interests over those of the OPEC+ alliance, a move that risks fueling further tensions within the cartel.
Overnight saw prices rally after bigger than expected inventory drawdowns reported by API in the US, but that was all erased this morning as Kazakhstan’s newly appointed energy minister Erlan Akkenzhenov said the country is not able to reduce production at its three largest projects as they are controlled by international oil majors, Reuters reported.
He said the country will prioritize its national interests over commitments to the OPEC+ alliance.
The move lower shows just how overly sensitive financial markets have become in recent months. Kazakhstan has been ‘over-producing’ for years with OPEC unable to control them… but suddenly it’s an issue?
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