- OPEC+ is proving that in the mercurial world of oil markets, sometimes the best move is to stay put and hold your breath. Just last month, when the banking brouhaha sent crude futures tumbling to a 15-month low of about $70 per barrel in London, many wondered if Saudi Arabia and its OPEC+ compadres would come charging in with yet more production cuts to prop up the industry.
- Despite the significant changes taking place, it appears that OPEC+ will maintain its current position. The Saudis have publicly expressed that the coalition, which includes 23 countries, should maintain the same level of production for the entire year. Representatives privately anticipate that there will be no modifications during the monitoring meeting that is scheduled to take place on Monday among key members.
Why it matters
Concerns regarding the spread of financial instability have diminished, and attention has shifted back to China's growing demand for oil, along with the decrease in Russian output due to their involvement in Ukraine. The price of crude oil has significantly rebounded to almost $80 per barrel, providing support to revenue for Riyadh and its partners.
