Despite oil prices climbing well above $100/B, Opec+ resisted pressure to accelerate the unwinding of cuts during another swift meeting on 2 March. The alliance is adamant that the fundamentals show a well-balanced market, while delegates are also concerned that any move to open the taps would exacerbate market concerns over diminished spare capacity.
As such, the production ceiling for the 19 participating members of Opec+ will increase by 400,000 b/d to 39.65mn b/d for April (see table). In reality the production increase will be markedly less than this. Official figures from Opec+ put the January increase at barely 250,000 b/d, some 150,000 b/d below the plan. Given the scale of ‘self-sanctioning’ by Russia’s crude customers currently being seen, the alliance’s overall production could well plunge in the coming weeks. (CONTINUED - 1046 WORDS)
