OPEC+ alliance, lLed by Saudi Arabia and Russia decided this wednesday in vienna reduce its pumping by 2 million barrels per day (mbd), This represents the largest disruption to oil supply since May 2020.
This was announced to the press by Iranian Deputy Oil Minister Amir Hossein Zamaninia at the end of the Organization of Petroleum Exporting Countries (OPEC) ministerial conference. ten allied producing countries, including RussiaMexico and Kazakhstan.
Also, heThe ministers attending agreed to extend the cooperation for another year. The alliance, which was formed in 2016 to face the decline of “petropris” caused by the shale gas explosion in the USA, will continue until at least the end of 2023.
Ministers announced that they agreed in their last statement. “adjust global production down 2 mbd (…) from November 2022”.
Agreed production cut It’s the most voluminous since the group launched around 10mbd in May 2020 to make up for its collapse. Energy demand triggered by the coronavirus crisis.
Lower than official discount
In international markets since V, yesterday is close to double what was expected by Tuesday.several delegates leaked to the press that they were negotiating a reduction of just over a million barrels a day, This has already caused a significant increase in crude oil prices.
Again, the actual reduction is expected to be less than the official one, because most of the group’s producers remained well below the national quota set for months, despite pumping to the maximum of their technical capacity.
One month agoThe alliance has set the limit for joint production at 43.85 million barrels per day (mbd). (Not including OPEC members Venezuela, Iran and Libya), but it is estimated that they currently produce 3.5 to 5mbd below this level.
Even when real cropping will be less than the last announcedThe measure adopted today is a clear “no” to Western countries that have long asked OPEC to turn on the taps to lower fuel and energy prices and thereby lower inflation.
Biden criticizes OPEC+ decision
US President Joe Biden said this Wednesday,Disappointed by OPEC+’s decision to cut production by 2 million barrels per day and thought it was a “short term” measure.
“At a time when protecting the global energy supply is of paramount importance, this decision will have the greatest negative impact on low- and middle-income countries, “Those who are already suffering from high energy prices,” said national security adviser Jake Sullivan and economic adviser Brian Deese.