# Saudi Arabia cannot escape destiny as swing producer: Kemp

> A Reuters column by John Kemp discusses Saudi Arabia's long-standing role as OPEC's swing producer, which adjusts output to balance supply and demand or reach a target price. The column traces the historical allocation system that formalized this role in 1983.

- Date: 2017-02-01 · published 2017-02-01T12:00:00.000Z
- Category: policy · region Global · magnitude low
- Page: https://feedsoft.ai/events/72412-saudi-arabia-cannot-escape-destiny-as-swing-producer-kemp
- Commodities: [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Saudi willingness to adjust output determines how durable OPEC supply cuts are, which affects crude price expectations and in turn biofuel and energy input costs for feed.

## Read by commodity

- WTI: neutral
- BRENT: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| BRENT | 2019-02-21 | [Column: Saudi Arabia resumes familiar role as swing producer](https://feedsoft.ai/events/60518-column-saudi-arabia-resumes-familiar-role-as-swing-producer.md) | -1.5% | +2.2% |
| BRENT | 2018-05-30 | [Saudi Arabia, OPEC and non-OPEC producers to continue cooperation until end of 2018 - Reuters — Octa](https://feedsoft.ai/events/64940-saudi-arabia-opec-and-non-opec-producers-to-continue-cooperation-until-end-of.md) | -1.1% | -0.0% |
| BRENT | 2017-08-02 | [OPEC, Saudi Arabia, and Sanctions Update: Connecting the Dots](https://feedsoft.ai/events/69363-opec-saudi-arabia-and-sanctions-update-connecting-the-dots.md) | +0.9% | +0.2% |
| BRENT | 2021-02-19 | [Saudi Arabia and Russia at odds before crucial OPEC meeting](https://feedsoft.ai/events/48552-saudi-arabia-and-russia-at-odds-before-crucial-opec-meeting.md) | +4.3% | -2.1% |
| BRENT | 2017-03-07 | [Saudi oil minister says no 'free rides' for non-OPEC producers](https://feedsoft.ai/events/71901-saudi-oil-minister-says-no-free-rides-for-non-opec-producers.md) | -8.4% | -5.0% |
| WTI | 2018-05-30 | [Saudi Arabia, OPEC and non-OPEC producers to continue cooperation until end of 2018 - Reuters — Octa](https://feedsoft.ai/events/64940-saudi-arabia-opec-and-non-opec-producers-to-continue-cooperation-until-end-of.md) | -1.9% | +10.3% |
| WTI | 2017-08-02 | [OPEC, Saudi Arabia, and Sanctions Update: Connecting the Dots](https://feedsoft.ai/events/69363-opec-saudi-arabia-and-sanctions-update-connecting-the-dots.md) | -0.2% | -5.5% |
| WTI | 2021-02-19 | [Saudi Arabia and Russia at odds before crucial OPEC meeting](https://feedsoft.ai/events/48552-saudi-arabia-and-russia-at-odds-before-crucial-opec-meeting.md) | +5.0% | -0.8% |

## Sources

- reuters.com: https://www.reuters.com/article/us-saudi-oil-kemp/saudi-arabia-cannot-escape-destiny-as-swing-producer-kemp-idUSKBN15G4OO/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.