Despite conditions, OPEC is sticking to its plan
At its last monthly meeting on March 2, OPEC cited a “well-balanced market” in making the decision to maintain a production plan approved in April 2020 and reaffirmed in July 2021, according to an OPEC press release. .
The press release on OPEC’s website also noted, “This current volatility is not caused by changes in market fundamentals but by current geographic developments.”
OPEC reaffirming its decision will adjust monthly global production by 400,000 barrels per day for April 2022.
A day later (March 3), Brent crude was at $114 a barrel, while West Texas Intermediate crude was at $111 a barrel as of 11:30 a.m. CST, according to oilprice.com.
A Reuters report detailed oil costs not seen since May 2012, including a Brent crude price of $119.84 a barrel.
So far, the sanctions imposed on Russia for its invasion of Ukraine have not yet targeted oil and gas exports, except for a ban on the export of specific refining technologies, according to the Reuters report.
A proposed deal between the United States and Iran would increase production by more than one million barrels of oil a day, Reuters reported.
The Annual Energy Outlook 2022, released by the Energy Information Administration on March 3, predicted a significant increase in energy consumption in the United States due to economic growth through 2050.
Oil is expected to remain among the most consumed energy sources, but renewables will see the fastest growth, according to the EIA’s outlook.
In addition, US crude oil production, partly driven by global demand, is expected to reach record levels.
The full EIA report is available here.
The next OPEC and non-OPEC ministerial meeting is scheduled for March 31. LL