OPEC+ ministers decided to keep output policy as the global crude oil market is almost aligning with the group’s preferences. Reuters reported on Thursday.
The OPEC+’s ministerial committee kept the current production targets, however, some nations had been over-producing and had undertaken to increase compliance.
This maintains voluntary production cuts of 2.2 million barrels per day (bpd) in place until at least the end of June, supplementing with the existing 3.66 million bpd of cuts agreed upon in 2022.
Saudi Arabia and Russia lead these cuts. Recent factors like lower OPEC+ production, Middle East tensions, and increasing demand have boosted Brent crude prices.
Although OPEC+ does not target a specific price, members prefer around $90 per barrel. However, surpassing $90 could lead to inflation and hinder demand growth.
Stronger oil prices may affect demand, particularly in price-sensitive Asian economies, despite recent import increases.
Asian refining margins have been squeezed by rising oil prices, potentially impacting import demand growth.
