Postponement of the increase to the month of April
Once again, major oil producers have postponed plans to increase production, a move that comes in a weak market marked by slow global demand and increased production from other countries.
The oil cartel, known as OPEC+, had planned to begin increasing production in January, which would have resulted in an additional production of more than two million barrels per day. But in a news release issued Thursday by the Organization of the Petroleum Exporting Countries, eight countries, including Saudi Arabia and Russia, said they would delay planned gradual increases until at least April. This postponement is the third time these countries have postponed planned increases, which were first announced in June. The prospect of an increase in oil production weighed on the markets.
Uncertainty about the impact of Trump's return
According to some experts, the cartel may not have wanted to act while the impact of a Trump presidency on the oil market remained uncertain. Notably, the president-elect could take a tougher line on Iran, reducing the Islamic republic's oil sales, which would create space for increased production from other countries. January is also a time of low demand due to refinery maintenance, which reduces the need for crude oil.
Oil prices remained stable on Thursday, with Brent, the international benchmark, trading at $72.44 per barrel.
Our opinion, by leblogauto.com
It will be difficult for OPEC+ to find the right moment to start increasing production. The combination of moderate growth in global demand and expected production increases from countries like the United States, Guyana and Brazil is dwarfing OPEC and its allies. The transition to electric vehicles, although slower than some had anticipated, will also gradually reduce demand.
Sources : New York Times
To summarize
OPEC +, an oil cartel united around oil-exporting countries, had planned to start increasing its production in January. However, it has just delayed its decision due to weak demand and the desire of other countries not members of the alliance to increase their production.
