3/8/2023 0 Comments Opec next meetingOPEC Plus appears to be trying to intervene in a market that is difficult to read. President Biden visited the Kingdom in July despite his disapproval of the 2018 murder of the Saudi dissident Jamal Khashoggi by Saudi operatives. Now, analysts say, they may think it is time to make a stronger statement.Ī sizable cut by Saudi Arabia would appear to be an act of defiance of the Biden administration, which has pushed the Saudis and other OPEC members to supply enough oil to keep a lid on prices. ![]() The Saudis signaled a hawkish posture last month with a largely symbolic cut of 100,000 barrels a day. Croft estimated that the group was considering announcing a cut of 500,000 to one million barrels a day, roughly 1 percent of the global supply. “We certainly see a significant chance that the producer group will opt for a substantial cut to try to signal that there is indeed an effective circuit breaker in the market,” Helima Croft, head of commodity strategy at RBC Capital Markets, an investment bank, said last week. Oil prices in Europe and the United States rose 4 percent on Monday. Oil prices, about $85 a barrel on Friday for Brent crude, the international benchmark, have fallen by roughly a quarter since their June high. ![]() Since the group slashed oil production in early 2020 when demand collapsed because of the coronavirus pandemic, the producers have announced a series of steady monthly increases, though they have generally not met those goals.Īnalysts say that the Saudis appear determined to bring oil prices up to about $90 a barrel. ![]() Such a move, which analysts say is widely expected, would be a blow to the Biden administration, after it lobbied the Saudis to increase output.Ī cut would also mark a major turnaround in policy for OPEC Plus, which includes Russia. OPEC Plus, the oil producers’ group, is considering announcing a major cut in production when it meets on Wednesday, according to a person familiar with the thinking of Saudi Arabia, the group’s de facto leader.
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