OPEC + refuses to change production quotas and agrees to a slight planned boost in oil production

The Organization of Petroleum Exporting Countries (OPEC) and its crude oil production allies (collectively OPEC-plus) have agreed to moderately increase oil production in line with a previously agreed schedule. High price for nearly 7 years.

OPEC and non-OPEC Council of Ministers Held through a video conference on February 2, the cartel and its allies reaffirmed their previous commitment to gradually increase oil production by 400,000 barrels each month.

OPEC member countries led by Saudi Arabia and non-member countries led by Russia February 2 Ministerial Meeting Increase crude oil production in March by 400,000 barrels per day. With this move, OPEC-plus is sticking to its previous commitment to phase out the significant reduction of 10 million barrels per day in 2020. At that time, the pandemic and the corresponding blockade caused the economy to decline and oil demand plummeted.

As the economy recovered from the pandemic recession and demand returned online, oil prices rose, oil prices rose, contributed to the surge in inflation, and the United States and its allies pressured OPEC to pump more oil. rice field. However, these petitions were rejected as the cartel continued on its planned step-by-step path to increasing production to pre-pandemic levels.

The cartel’s decision to stick to the existing production quota increase schedule continues the tensions between Russia and Ukraine, which have created fears of disruption of oil and gas supplies to Europe during periods of high energy costs.

“The outlook for the conflict between Ukraine and Russia is that the oil market is at stake. In a tough market, significant turmoil can cost far more than $ 100 per barrel. “Benkei Hill, Senior Fellow of the Energy Security and Climate Change Program of the Institute for Strategic International Affairs, said. Said in a note..

Crude oil prices remained close to their seven-year highs on Wednesday, with West Texas Intermediate crude oil futures falling to $ 87.97 after reaching $ 89.43 per barrel (the highest in seven years). At the time of reporting.. Brent crude oil futures contracts, the global benchmark, reached $ 90.17 before falling to $ 88.92. By 12:24 pm The New York Times.

The move to stick to OPEC +’s production plan could support oil prices, especially as some members, such as Angola and Nigeria, were unable to increase production due to delayed investment in pump capacity infrastructure. I have.

“It is official that OPEC will stick to the script and increase production by 400,000 barrels per day. Good luck,” said Phil Flynn, Senior Market Analyst, PRICE Futures Group. Written in His latest version of the “Energy Report”.

Cayhill said in a note that markets are worried that few countries can afford to absorb the shock: “The possibility of a supply turmoil is unlikely, but fuels bullish sentiment. “.

Many analysts made Given the tight market and geopolitical tensions, it demands a price of $ 100 per barrel of crude oil. OPEC + members’ budgets benefit from rising oil prices, but they are also involved in stable price development, as soaring prices can undermine demand from transportation and industry.

Tom Ojimek


Tom Ozimek has a broad background in journalism, deposit insurance, marketing and communication, and adult education. The best writing advice he has ever heard is from Roy Peter Clarke.