Tuesday, June 18, 2024

“OPEC +” readiness for immediate change Restores stability in the oil market and consolidates gains


Oil prices rose yesterday after OPEC + said it would reconsider plans to increase production and make immediate changes before its next scheduled meeting if weakening demand for the new strain of the corona virus, Omigron.
Brent oil contracts were up 2.5 percent at $ 71.4 a barrel during the trading session, while US West Texas Intermediate crude futures were up 2.21 percent at $ 67.97.
According to Reuters, the Organization of the Petroleum Exporting Countries (OPEC) and its allies “OPEC +” surprised markets yesterday by announcing plans to increase oil production by another 400,000 barrels per day per month. In January.
The final report of the 23rd Ministerial Meeting of the “OPEC +” Coalition, held via video conference, stated that the continued commitment of the Member States to the Cooperation Announcement to Ensure a Stable and Balanced Oil Market in the light of current fundamentals has been confirmed. Of the crude oil market.
He said the meeting reaffirmed the decision to revise the production adjustment plan and monthly production adjustment mechanism approved at the 19th Cabinet meeting and to increase the total monthly production for January 2022 by 0.4 million barrels per day.
He pointed out that the producers agreed at the meeting that in the event of further improvements in the epidemic situation, the market should continue to be closely monitored, make immediate changes if necessary and extend the compensation period until the end. June (June) 2022 requires some poorly performing countries. He called on the worst-performing countries to submit their plans by December 17, 2021.
However, if demand is affected by Omigron’s regulatory measures, the makers have opened the door for a speedy policy change, insisting that they may meet again before the next meeting scheduled for January 4 (January) if necessary.
Uncertainty about Omigran, government efforts to tackle new epidemics and anticipation of increased supply has worried investors.
Since August, “OPEC +” has been producing an additional 400,000 barrels per day of global distribution each month, in the context of a gradual reduction in the record-breaking 2020s agreed upon. Fears of the impact of the mutant mutation increased after the United States. The latest country to record an injury within its borders, Wednesday.
Oil futures deals have been under pressure for weeks due to factors ranging from the new strain of the corona virus to the U.S. decision to withdraw from emergency oil reserves with other countries.
U.S. gasoline stocks rose four million barrels last week to 215.4 million barrels, which exceeded analysts’ expectations, in line with the decline in total gasoline supplied by refineries. On a four-week basis, petrol demand is in line with pre-infection levels. Crude oil stocks fell 910,000 barrels a week, which is expected to fall 1.2 million barrels.
Bulgarian researcher and energy affairs researcher Andrei Yaniv believes that “OPEC +” has an accurate future outlook for the market and believes that despite the suffering of some manufacturers, the monthly increase used will not disrupt the event of equilibrium and stability. This decision reflects the invalidity of earlier reports that “OPEC +” expects worse surpluses than previously expected in the first quarter of 2022 to meet the required production quota.
He emphasized that the letter was not a signal of a formal antitrust inquiry into the “Omicron” variable, but rather a signal of a formal antitrust inquiry into the United States and its decision to withdraw from crude oil reserves next January. But they insisted that the market was ready to intervene if needed and by holding emergency meetings.
Andre Gross, director of the German “MMAC” energy company, explained that there is good coordination and coordination between Saudi Arabia and Russia-led “OPEC +” manufacturers, and that there is agreement on changes in the market. Quick, but it should not be a reason to make decisions.
He emphasized that the decision was taken by Russia’s Deputy Prime Minister Alexander Djokovic, who said that the decision was taken “after a careful consultation with all parties” and that “there was no immediate need for further action.” Measures to adjust the size of the oil supply.
On the other hand, the “OPEC” crude rose, and its price reached $ 71.63 a barrel on Wednesday, up from $ 71.01 a barrel the previous day.
The Organization of the Petroleum Exporting Countries (OPEC)’s daily report yesterday said the price of a basket, which includes an average of 13 crude oil from the output of member states, has reached its first rise since several previous sharp declines. The basket lost about ten dollars compared to the same day last week. , Which was $ 81.75 a barrel.

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Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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