Analytical Reviews

Get the latest economic news from ForexMart, including updates on the financial market, central bank policy announcements, financial indicators, and other relevant news which can impact the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

OPEC will not limit production at the June meeting


June, 01 2023
watermark Economic news

Sources close to OPEC+ reported that the cartel and its allies probably will not impose more large-scale production restrictions at the meeting scheduled for June 4, despite the decline in prices to $70 per barrel. 


Against the background of the deteriorating prospects for the global economy, some OPEC+ countries decided in April to introduce additional production restrictions, which will be in effect from May until the end of the year. Today, OPEC+ accounts for approximately 40% of world oil production and 60% of world exports, so any serious decisions of the alliance can have a significant impact on oil prices.


At the beginning of October last year, the cartel decided to reduce production by 2 million barrels per day compared to the level of August 2022. Now the total reduction in OPEC+ production is 3.66 million barrels per day. At the same time, the total oil production today is below the target level due to limited production capacities in Nigeria and Angola (production in these countries in total is 600 thousand barrels/day below the established quotas).


In addition, last month Iraq's production was 220 thousand barrels per day below the target level due to supply disruptions from Iraqi Kurdistan.


Thanks to the April OPEC+ decision on additional production restrictions, Brent oil prices jumped by about $9 and exceeded $87 per barrel. However, today Brent quotes are located near the area of $74 per barrel.


コメントする

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.
Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.