Once again everything must be repeated: Oil supply will remain unchanged. At least until late spring. An approach that allows for recovery.Crude oil pricewhich discounted a possibility, albeit remote, of an increase in supply in the latter period.
OPEC+ has decided.
L’OPEC+The Organization of the Petroleum Exporting Countries, which includes some outside members from OPEC, such as Russia, met today. Adjourned again for three months. Expected increase in oil production quota. This is what the delegates who participated in the online meeting postponed from last December 1 expected from Bloomberg.
The group postponed the supply ramp-up, which was due to begin in January, with the addition of 180,000 barrels per day. will start instead. In Aprilwhen cuts are expected at a slower pace than previously planned.
A series of postponements
This is the third adjournment, enacted because a Decrease in demand The global market (especially in China) and increased production outside the group (in the US) have put a lot of pressure on crude oil prices.
OPEC+ first announced in June that it would. Production resumes Withheld from 2022, recovery of cumulative volume 2.2 million of barrels per day in monthly installments.
More broadly, OPEC+ members are freezing 5.86 million barrels per day of production, or about 5.7 percent of global demand, from 2022 in a series of agreed measures to support the market.
This decision is also valid for Emirates.
That too United Arab Emirates They will not increase Production before April. In fact, this group would also have to face an increase in production 300,000 barrels For the UAE, it was already agreed in June, to start in January 2025 and be phased in gradually.
Crude oil prices recover
News of no production growth bodes well for us. References of oil, which is growing in key trading markets. But the near future Light Crude StatinityAlso known as the West Texas Intermediate, It is up 0.36% to $68.78. per barrel, while the closest contract is in progress. North Sea Brent It rose 0.32 percent to $72.54. per barrel
Despite today’s positive performance, there are still factors weighing on the market, which is why OPEC+ has decided to wait. These include falling demand in China and ongoing crises in other Western countries. A fact that is reflected in the performance of crude oil. Year to date The score of which is A -5.5% for Brent and -3.3% for WTI.
