The oil cartel will extend its production cuts for three more months to artificially support the price of crude oil. OPEC+, the expanded version of the Organization of the Petroleum Exporting Countries, agreed this Sunday to carry this reduction in pumping until June 30. Until now, this agreed withdrawal only covered until March 31.
The current joint cut that this group of countries, led by Saudi Arabia and Russia (second and third largest crude oil producers on the planet, after the United States), dates back to the fall of 2022 and represents the withdrawal of 2.2 million from the global market of barrels daily.
OPEC+ has been scissoring its supply for years, a policy that redoubled during the pandemic, when global oil consumption plunged. Without these voluntary withdrawals, which have provoked the response of several large consumers, the oil market would be even more flooded – with a supply that remains solid, especially from non-OPEC countries, such as the United States, Canada and Guyana, and a demand that has not yet taken off—and prices, noticeably more depressed.
Brent crude oil, the benchmark in Europe, is trading today at around 83 dollars per barrel, far from the 120 it reached in the early stages of the Russian invasion of Ukraine but at a comfortable level for most major oil companies. producers.
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