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OPEC+ Likely To Stick To 2mbpd Output Cut Until End 2023


OPEC+ is likely to stick to its deal on output cuts of 2mbpd until the end of the year, even after banking turmoil sent crude prices plunging, three OPEC delegates told Reuters.

  • Russian Deputy Prime Minister Alexander Novak on Tuesday said that Moscow will continue with a 500kbpd production cut until July. The cut was previously announced for March only.
  • "This is only a unilateral cut of Russia. No changes for the group until the end of year," a delegate said.
  • Another delegate added that no further cuts were planned by the group. And a third delegate said the recent slump in oil prices was related to speculation in the financial market, not market fundamentals.
  • Last October OPEC+, agreed steep output cuts of 2mbpd from November until the end of 2023.
  • Oil prices hit 15-month lows on Monday in response to the banking crisis that followed the collapse of two US lenders and resulted in Credit Suisse being rescued by UBS.
  • OPEC would likely intervene if oil prices dropped substantially, Helima Croft, chief commodity strategist at RBC said on Tuesday.
  • The next OPEC+ JMMC meeting is scheduled for 4 April and the next full OPEC+ meeting is scheduled for 4 June.
  • Brent MAY 23 down -0.3% at 75.13$/bbl
  • WTI APR 23 up 2.5% at 69.33$/bbl

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