Over the next few days, OPEC countries need to decide whether to extend their “voluntary” oil output cuts into the second quarter. The market anticipates a full rollover. Instead, I believe the cartel has a chance to add a bit of extra supply, taking some short-term pain for a long-term gain.

In November, several OPEC nations, led by Saudi Arabia and Russia, announced a series of production curbs totaling 2.2 million barrels a day for the first quarter of 20241. The official explanation was that the reduction was to support “the stability and balance of oil markets.” Even if left unsaid, the actual objective was clear: establish a firm floor for crude prices at around $80 a barrel.

QOSHE - OPEC+ Can Trade Short-Term Oil Pain for Long-Term Gain - Javier Blas
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OPEC+ Can Trade Short-Term Oil Pain for Long-Term Gain

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28.02.2024

Over the next few days, OPEC countries need to decide whether to extend their “voluntary” oil output cuts into the second quarter. The market anticipates a full rollover.........

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