In this interview with Maya Hojeij from Asharq Business Bloomberg, Dr Carole Nakhle, CEO of Crystol Energy, discusses OPEC+ decision to stick to its production plan of putting an additional 400,000 barrels per day monthly.
Dr Nakhle argues that the announcement did not come as a surprise as the organisation has iterated that there are no structural changes in the oil market fundamentals to justify a change in strategy. In addition, the announcement of the 1 Mb/d release from the US Strategic Petroleum Reserve (SPR) for 180 days and the slowing economic activity as a result of Covid restrictions in China are weighing down on the outlook for oil demand growth.
She adds that Russia is searching for allies in trade, economics and politics and, thus, wants to maintain a good relationship with OPEC, which is no stranger to members with opposing political stances let alone at war with each other (Iran & Iraq, Iraq & Kuwait). OPEC+ will come under greater pressure the more the war in Ukraine worsens.
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