OPEC+ countries decided not to cut oil production

The Organization of Petroleum Exporting Countries OPEC+ has decided not to reduce oil production.

OPEC+ believes that the best response to the growing uncertainty in the oil market will be to maintain current levels of production, reports Bloomberg.

The recent banking crisis caused oil futures to fall to a 15-month low of $70/barrel. At the time, it was predicted that Saudi Arabia and its partners would cut production to support the market.

However, representatives of Saudi Arabia publicly stated that the coalition of 23 countries should maintain a stable level of oil production throughout the year.

At the same time, renewed demand for oil in China was in the spotlight again, along with pressure on production opportunities in russia, following its invasion of Ukraine. Oil futures rose to almost $80/barrel.

“Confidence that prices would return to $100 a barrel, widely held in the oil industry at the start of the year, has not materialized as russian exports have proved resilient to international sanctions. It seems that the world supply this quarter will be in excess,” says the message of OPEC+.