Once again everything has to be done again: oil supply will remain unchanged at least until late spring. A perspective that allows for a recovery ofthe price of crude oilwhich in the last period discounted a possibility, albeit remote, of an increase in supply.
OPEC+ has decided
OPEC+the organization of oil exporting countries belonging to OPEC composed of some external members such as Russia, which met today, has postponed again for three months the expected increase in oil production quotas. This is what was anticipated to Bloomberg by the delegates who participated in the online meeting postponed from last December 1st.
The group postponed the series of supply increases, which was supposed to start in January, with an increase of 180,000 barrels per day. It will start instead in Aprilwhen it is expected to make cuts at a slower pace than previously planned.
A series of postponements
This is the third postponement, implemented because a slowdown in demand global market (especially in China) and an increase in production outside the group (in the USA) have put excessive pressure on crude oil prices.
OPEC+ first announced in June that it would production resumed interrupted from 2022, recovering an overall volume of 2.2 million of barrels per day in monthly tranches.
More broadly, OPEC+ members are freezing 5.86 million barrels per day of production, or about 5.7% of global demand, in a series of agreed measures from 2022 to support the market.
Decision also valid for the Emirates
Him too United Arab Emirates they will not increase production before April. In fact, the group would also have had to face an increase in the production of 300,000 barrels for the United Arab Emirates, already agreed in June, which was supposed to start in January 2025 and be phased in gradually.
Crude oil prices recovering
The news of the lack of production increase is doing good for us quotes of oil, which are increasing on the main trading markets. The nearest future on the US Light Crudealso known as West Texas Intermediate, it is rising 0.36% to $68.78 per barrel, while the closest contract on Brent of the North Sea it advanced by 0.32% to 72.54 dollars per barrel.
Despite today’s positive performance, there are factors still pressing the market, which is why OPEC+ has decided to wait. These include the slowdown in demand in China and the crisis underway in other Western countries. A fact that is reflected in the performance of crude oil year to date which scores a -5.5% for Brent and -3.3% for WTI.
