Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

OPEC+ sticks to modest oil output hike despite price rally

Commodities May 05, 2022 08:50AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The logo of the Organization of the Petroleoum Exporting Countries (OPEC) is seen at OPEC's headquarters in Vienna, Austria June 19, 2018. REUTERS/Leonhard Foeger

By Maha El Dahan, Ahmad Ghaddar and Alex Lawler

LONDON (Reuters) -OPEC+ agreed on Thursday to another modest monthly oil output increase, arguing that the producer group could not be blamed for disruptions to Russian supply and saying China's coronavirus lockdowns threatened the outlook for demand.

Ignoring calls from Western nations for accelerating output hikes, the group agreed to raise its June production target by 432,000 barrels per day, in line with an existing plan to unwind curbs made in 2020 when the COVID-19 pandemic hammered demand.

Thursday's meeting of OPEC+, made up of the Organization of Petroleum Exporting Countries and allies including Russia, was held amid surging oil prices.

In March, crude prices hit their highest since 2008 at more than $139 a barrel after Russia's invasion of Ukraine exacerbated supply concerns that were already fuelling a rally. Benchmark Brent crude traded above $111 on Thursday. [O/R]

The meeting also comes a day after the European Union proposed a phased embargo on Russian oil in its toughest measures yet over the war in Ukraine, which Moscow calls a "special military operation".

Two sources present at the meeting said delegates completely avoided any discussion about sanctions on Russia, wrapping up talks in near record time of just under 15 minutes.

The oil embargo will likely force Russia to reroute flows to Asia and cut production steeply, while the EU will compete for the remaining available supply. Both factors are likely to support elevated crude prices.

"OPEC+ continues to view this as a problem of the West’s own making and not a fundamental supply issue that it should respond to," said Callum Macpherson from Investec.

He said only Saudi Arabia and the United Arab Emirates had capacity to lift supply significantly, adding: "If they were to do so, the ensuing falling out with Russia could bring an end to OPEC+."

OPEC Secretary General Mohammad Barkindo said on Wednesday it was not possible for other producers to replace Russian exports of more than 7 million bpd. "The spare capacity just does not exist," he said.

The United States has repeatedly asked OPEC to raise production, but the Saudi-led organisation has resisted the calls amid strained relations with Washington.

The West's energy watchdog, the International Energy Agency, agreed last month to release record volumes of oil stocks to help to cool prices and offset supply disruptions from Russia.

OPEC+ sticks to modest oil output hike despite price rally
 

Related Articles

Norway pledges 1 billion euros to support Ukraine
Norway pledges 1 billion euros to support Ukraine By Reuters - Jul 01, 2022 5

(Reuters) - Norway on Friday pledged 1 billion euros ($1.04 billion) to help Ukraine defend itself, support people in need and for reconstruction in the wake of Russia's invasion....

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (6)
Limin Tandiono
Limin Tandiono May 05, 2022 9:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The west set the fire themselves, but blame others if others are not willing to put off the fire they set...what a ridiculous logic!
Limin Tandiono
Limin Tandiono May 05, 2022 9:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The west put set the fire themselves, but blame others if others are not willing to put off the they set....
dar dar
dar dar May 05, 2022 9:23AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I have to give it to these Saudis they are very wise
Maximus Maximus
Maximus Maximus May 05, 2022 8:57AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
trump crime family taking bribes from dictatorships around the world, emboldening them for years to go against the west. now we see the results of trumps criminal neglect and mismanagement
dar dar
dar dar May 05, 2022 8:57AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it's what politicians do where have you been for thousands of years
Michael Mcdonough
Michael Mcdonough May 05, 2022 7:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Unlike the Biden crime family Jared wasnt in office…thats a crime as far as I know
gab nea
gab nea May 05, 2022 6:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
strained relations with the saudis? I thought jared kushner was had resolved the relations with them. oh I forgot he resolved a problem that didnt exist, oh and netted a 2 billion dollar investment. grifters?
Lion King
Lion King May 05, 2022 6:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
who ever leade American today , hate Saudi and hates America more. Saudi can't work with this trangenders Bunny government
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email