US-Saudi diplomacy paved way for OPEC+'s surprise output hike

After weeks of diplomatic tension between Saudi Arabia and the U.S. -- with President Joe Biden calling for more oil to ease pump prices and OPEC pushing back -- a truce has emerged

The U.S. and Saudi Arabia have reached a detente after weeks of hostility about high oil prices, with the OPEC+ cartel announcing a production hike even as the new Covid variant threatens demand.
 

The group led by Saudi Arabia and Russia surprised markets by agreeing to add 400,000 barrels a day of oil from January, even as the virus undermines prices for oil-producing nations. It left the door open to changing its mind, however, saying ministers could gather again at any moment to review the decision if conditions change.

After weeks of diplomatic tension between Saudi Arabia and the U.S.