OPEC+ is still finding that the best response to growing oil market uncertainty is to hold its ground.
When last month’s banking crisis dragged crude futures to a 15-month low near $70 a barrel in London, speculation swirled that Saudi Arabia and its partners might intervene with fresh production cuts to shore up the market.
But despite all the upheaval, OPEC+ shows every sign of sitting tight. The Saudis have said publicly that the 23-nation coalition should keep output levels steady all year. Delegates privately predict that, when key members hold a monitoring meeting on Monday, they won’t make any adjustments.
Fears over financial contagion are receding and the focus is returning once again to China’s resurgent oil demand, coupled with pressure on Russian output since its invasion of Ukraine. Crude futures have recovered sharply to almost $80 a barrel, buttressing revenue for Riyadh and its allies.
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