Meeting In Vienna: OPEC+ Talks Oil Production
OPEC+ meets in Vienna to talk about their production strategy. The meeting could lead to new oil production cuts. Saudi Arabia and Russia's disagreement could affect the talks.
OPEC+ met in Vienna over the weekend. They talked about production strategy. They might cut daily production by one million barrels.
Experts think the same production plan will continue, but being careful is important. Russia said they won't change anything before the summit. Saudi Arabia mentioned they might have some surprises.
In April, OPEC+ countries chose to reduce production again until the end of the year to stabilize the oil price. They had done this before in October 2022. It briefly helped the prices, but it didn't make a lasting difference.
Oil prices have been falling for a year. Producers might soon have too much supply. OPEC oil cost 107,22 Euros (115 US dollars) in June 2022. Now, it's about 69,93 Euros (75 US dollars).
"Sunday's Meeting: Saudi Arabia And Russia Clash Ahead."
The relationship between major oil producers Saudi Arabia and Russia doesn't look good. This could cause problems for their upcoming meeting on Sunday about oil production policy. This is known as the OPEC+ meeting. Their partnership will be tested.
The 13 OPEC members are meeting with their 10 allies in person. Riyadh is leading the meeting. Moscow is leading the allies. The meeting is happening in Vienna. This is the second meeting at the OPEC headquarters. The last meeting was in March 2020.
The OPEC spokesman said nothing.
Experts can't agree if Saudi Arabia and Russia will keep the group on the same course or lessen production to boost prices.
Tamas Varga from PVM Energy said that the recent talk from the two big hitters has been inconsistent. The result is difficult to guess.
The Saudi Energy Minister said don't bet on oil prices going down. People think new cuts could happen. This happened last week. His name is Prince Abdulaziz bin Salman.
Russia's Deputy Prime Minister, Alexander Novak, disagreed with the assessment. He ruled out additional production adjustments in an interview with the Russian media.
Moscow promised to cut 500,000 barrels per day in February. Moscow did not do what they promised. There are mixed signals.
Russia is sending oil to India and China. They are doing this because the war in Ukraine is affecting their economy. Also, Western sanctions are affecting them too. India and China are buying the oil as it is cheap.
