OPEC+ keep output steady as global economy weakens

• Financial

The Saudi-led 14-member Organization of Petroleum Exporting Countries (OPEC) alongside their Kremlin-led allies, often dubbed as OPEC+, had decided against further output cut on Sunday’s policy meet, as global oil demands remained perilous amid frets of an impending recession in a majority of G7 countries.

In the matter of the fact, latest move from OPEC+ nations came against the backdrop of a weakening of global economy, as questions raised on how China’s latest decision to ease its pandemic restriction would affect demands.

On top of that, a couple of months earlier, ignoring calls from a majority of G7 nations including an incumbent Biden Administration, the OPEC+ had slashed their output by 2 million bpd (barrels per day) of a roughly 2 per cent of entire global demand in a bid to re-balance the global oil market.

However, the decision led to mixed response from G20 countries, while Washington had accused the Kingdom of Saudi Arabia to side with Kremlin. Besides, there had not been any comments on EU’s price cap on Russian oil, as Kremlin had intransigently responded to a $60 per barrel price cap imposed by G7 nations alongside Australia adding that it would no longer sell oil and oil products to abovementioned countries under a price cap.

In tandem, Russ Deputy Prime Minister Alexander Novak was quoted saying on Sunday that Kremlin would rather trim output instead selling oil under a price cap. If truth is to be spoken, selling oil under a $60 per barrel price cap, in effect, would impact other oil producing nations.

OPEC+ keeps output steady

Meanwhile, a press agency report had quoted sources who wished to remain anonymous as saying that the OPEC+ had decided against further output cut largely due to a mass-scale weakening of global economy.

OPEC+ members would meet again on February 1 for a review of their current policy, while a full meet is scheduled on June 3-4, 2023.