Dangers Proliferate for Producers

Copyright © 2023 Energy Intelligence Group All rights reserved. Unauthorized access or electronic forwarding, even for internal use, is prohibited.
  • Challenges, on both the supply and demand sides, are ramping up ahead of Opec-plus’ ministerial meeting next week.
  • When faced with uncertainty, producers’ traditional response is to do as little as possible.
  • A desire to maintain group unity will likely trump other priorities, such as revamping Opec-plus’ discredited quota system.

Interest in Opec-plus’ Sep. 5 meeting is ratcheting up, and with good reason. With the group’s post-Covid-19 supply agreement having expired, all options are open. Demand concerns driven by fears of an economic downturn have kept prices under pressure in recent weeks, despite recent Saudi talk of a potential supply cut should the market warrant it. Whatever happens, ongoing Opec-plus coordination seems a sure thing, with Russian Deputy Prime Minister Alexander Novak saying Thursday that his view "is that we need to continue such cooperation" given its effectiveness to date.

Opec-Plus Supply , Forecasts, Macroeconomics , Oil Supply, Oil Demand
Wanda Ad #2 (article footer)
Victory in landmark elections means Erdogan's era of political hegemony will extend into a third decade, with major implications for both Turks and global geopolitics.
Thu, Jun 1, 2023
Mumbai-based Gatik, which has become one of the largest shippers of Russian crude, may be unable to insure its ships after being struck off by US and UK registries.
Thu, Jun 1, 2023
Opec-plus faces another tricky meeting this weekend as benchmark Brent struggles to stay above $70 per barrel despite the group's recent supply cuts.
Thu, Jun 1, 2023