The statement published by the cartel indicates that the decision “reconfirms the production adjustment plan and the monthly production adjustment mechanism approved at the XIX OPEC and non-OPEC Ministerial Meeting and the decision to adjust up the general monthly production by 0 , 4 mbd for the month of February 2022, according to the attached schedule “.
Thus, in February OPEC will produce about 28.5 million barrels of crude per day (mbd), compared to the 30.4 million it pumped before the COVID-19 crisis. Little by little, the cartel is turning on the taps after drastically cutting production in 2020 (pumping dropped to 22.5 mbd in June, when cuts peaked.
Global fuel consumption continues to recover after the collapse of 2020. Traffic and manufacturing activity in Asia’s major consuming countries have rebounded and US crude inventories have declined, pushing international oil prices higher. close to US $ 80 per barrel.
OPEC + has already resumed about two-thirds of the production that was interrupted in the early stages of the pandemic. The group tries to gradually restore the rest of the production at a rate that satisfies the recovery of fuel consumption – and avoids an inflationary spike in prices – without causing a new fall in the market.
Although the Organization of the Petroleum Exporting Countries and its partners are still expecting a supply surplus to emerge this month, it appears to be smaller than previously thought. The increase in the premium of short-term Brent crude futures prices over later dated contracts suggests that the market remains tight.
However, also There are doubts as to whether OPEC + will be able to meet the monthly increases of 400,000 barrels a day, given the recent problems of some members, such as Angola and Nigeria, to meet its production targets.
After knowing the decision of the 23 member countries, a barrel of crude oil trades with a positive trend in its values in the international markets of New York and London. The crudo West Texas Intermediate (WTI), which operates in the New York futures market (Nymex), is up almost 2% and was trading at $ 78.2 a barrel in contracts with delivery in February.
With the same rise as the WTI, the crude type Brent The benchmark in Europe, which operates on the London electronic market (ICE), is trading at $ 80 in contracts for March.
Source From: Ambito
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