Opec Consider Market Conditions

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Opec Consider Market Conditions

OPEC Consider Market Conditions

The next OPEC+ meeting is scheduled to be held in December, and according to a senior official from Iraq, they will be looking at the balance and the condition of the market!

During the October meeting of OPEC+, it was decided that the production of crude oil would be dropped by 2 million barrels/day (BPD). This decision ended up stabilizing the global markets, according to Saadoun (OPEC's Iraqi delegate).

And even after the cuts in oil production, the experts in Iraq were not reduced. So overall, it was a win-win situation for all the parties involved.

Currently, around 11% of the total output of OPEC+ comes from Iraq. Overall, the total output of the OPEC+ group is around 43 million barrels per day.

According to Iraq's officials, they are expecting the price of crude oil to be around the $85 to $95 range during the next year.

If we look at the composition of OPEC+, it includes Russia, Iraq, and a few other major petroleum exporting countries. And the next meeting will be held in Vienna during the first few days of December.

Right now, the oil market is going through a lot of fluctuations due to the pandemic and a slowdown in global consumer demand. In addition, the war in Ukraine is also weighing heavily on the crude oil markets which has even led to a proposed price cap on Russian crude oil.

Although the market participants pay close attention to the OPEC meetings, we can't simply ignore the upcoming OPEC+ meeting as well! Overall, the group produces millions of barrels of crude oil every day and thus has the ability to affect its prices as well.

It seems that the major catalyst for the crude oil will be the softening of the COVID-19 restrictions in China. Once that happens, it could prove to be a major boost for the crude oil prices and will drive them higher. But for now, there's no such thing happening and the immediate threat is the price cap on Russian oil!

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