OPEC+’s surprise statement on production cuts Oil It will have an impact on the oil supply of approximately 1.65 million barrels per day. gasoline pricebut it will be more obvious next week Nacho Rabadan, President of the Spanish Confederation of Service Station Entrepreneurs (CEEES).
HE increase in the cost of crude oil will affect wholesale buyers, who will have to pass it on to customers. Wholesalers don’t want to have to buy the most expensive crude and sell it at higher prices at gas stations. Rabadan guesses this the price for consumers will not fall below 1.5 euros per liter in the medium term, but you don’t risk predicting how much it might go up.
strategy change OPEC+ It stems from the current geopolitical context of the war between East and West. United States of America last year it extracted large quantities of oil from its strategic reserves, but now its stocks have bottomed out. It was expected to buy oil again and replenish its strategic reserves after the price drop caused by the crash.l Silicon Valley Bankwhich put Texas at $70 a barrel.
OPEC+’s decision to cut supply is a clear sign that they want the price to stay at $75-80 per barrel, not drop to $50-60. The action encourages increase in crude oil price and it represents a new upside risk to inflation and a downside risk to growth. The initiative is consistent with the new OPEC+ doctrine: act early as they can do so without significantly losing market share.
The production cut is taken after oil prices have fallen to minimum levels for more than a year as a result of worsening cyclical expectations due to financial instability and its potential impact on economic activity. The measure will be extended until the end of 2023 It will affect countries such as Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman.