Column: OPEC+ has an ostrich problem. It's ignoring Ukraine | Reuters

Column: OPEC+ has an ostrich problem. It's ignoring Ukraine | Reuters

The decision by OPEC+ to stick to its plans for only a small increase in crude oil output in April shows the producer group is increasingly disconnected from the new reality of the market following Russia's invasion of Ukraine.

The group that houses the Organization of the Petroleum Exporting Countries (OPEC) and allies - including Russia itself - agreed on Wednesday to maintain a long-planned 400,000 barrels per day (bpd) production increase next month. read more

The group made no mention of the Ukraine crisis in a statement after the meeting, only referring to unspecified "geopolitical developments".

But more telling was the statement that the "current oil market fundamentals and the consensus on its outlook pointed to a well-balanced market, and that current volatility is not caused by changes in market fundamentals."

OPEC+ is both right and wrong in this assessment.