The Organization of Petroleum Exporting Countries and his allies (OPEC+) announced this Thursday that will keep the cuts of crude oil production. It is a decision made at the end of last year.
In this framework, crude oil futures Brent gives up 2.2%until the US$78.82 the barrel. For their part, US crude oil futures West Texas Intermediate 2.1% to $74.28after falling more than US$2 in the previous session.
The decision was made after a key members panel of the oil cartel headed by Saudi Arabia, recommended not to make changes in production policy, according to delegates who asked not to be identified to the Bloomberg agency.
This Thursday, the organization reaffirmed in a release their “willingness to take additional measures at any time“On the other hand, it is planned that the Joint Ministerial Petroleum Monitoring Committee meet again April 3.
In this way, the organization will maintain a additional cut of 900,000 barrels per day with the objective of avoid a surplus in supply and so that the international price does not fall of crude oil.
In fact, this year it is expected that the biggest increase in crude oil production comes from members who are not part of the OPEC as USA.
He Saudi energy ministerPrince Abdulaziz bin Salmananticipated that the current OPEC+ restrictions could be prolonged “absolutely” beyond the first trimester if this were necessary.
OPEC+ decided to maintain production cuts: in what context?
Despite the geopolitical tensions in the Middle East and the transport problems in the Red Seahe oil continues to remain since the beginning of the year close to US$80 per barrel.
The International Energy Agency (AIE) estimates that the world oil market will have again surplus in supply from the next quarter and this situation would continue for the rest of the year if OPEC relaxes its restrictions and reactivates production.
Although it is expected that the global demand reach a record from around 103 million barrels per day this year, the growth rate is slowing and, at the same time, shows a increase in supplies coming from outside the cartel.
The US production is reaching unprecedented levels thanks to the resurgence of drilling, while Guyana and Brazil are also expanding.
Saudi Arabiathe most important member of OPEC, this week gave some doubts about the future of the oil market by deciding that its oil company Saudi Aramco would abandon its investment plans to increase oil capacity by 1 million barrels per day (8%) by 2027.