Opec+ ministers are in a tight spot: demand might not be as strong as they thought
Opec+ is in a tight spot
Oil producers’ demand outlook not as bullish as thought as output cuts have limited impact
Oil ministers from the 23 members of the Opec+ alliance met in Vienna on 4 June to discuss the state of the market and to decide what, if anything, to do to prop up prices. When, on 5 October 2022, Opec+ made a surprise cut of 2mn bl/d to its production ceiling, the price of Brent crude was $93.37/bl. In April, when voluntary production cuts by some members of the alliance totalling 1.15mn bl/d were announced, the price was $84.93/bl. In early May, the price of front-month Brent crude dipped below $80/bl and it has stayed there ever since, bottoming out at slightly below $71/bl just before the ministers sat down for talks. There is no official price target set by Opec+, but it is widely beli
Also in this section
6 March 2025
A timebomb in copper mining should prompt policymakers to rethink road transport before battery-electric vehicles go down a dangerous dead end
5 March 2025
The oil alliance’s decision to keep to the plan amid tightening economic fundamentals seems to have been lost in the global geopolitical maelstrom, misplaced market speculation and haze of conjecture
5 March 2025
Petronas is making huge efforts to arrest falling oil production and accelerate gas increases to meet rising demand, but political tensions persist
5 March 2025
Plans to boost capacity have seen little progress as the country lags behind other major oil consumers and importers
