SPECULUM VERUM
Some of the OPEC+ member Arab countries led by Saudi Arabia, decided to "voluntarily" reduce daily oil production as of May; oil prices started the week by taking flight.
The member countries of the group made the announcement on Sunday night., Brent crude oil on Monday 5 entered with an increase, barrel price 85 reached the dollar. Riyadh made the first statement: “In coordination with OPEC+ countries, daily oil production will be increased from May to the end of the year. 500 It was decided to reduce a thousand barrels..
This voluntary deduction, It is in addition to the cut decision taken in November 2022. In Russia, daily oil production 500 announced that it would cut a thousand barrels.
Along with these decisions, OPEC+ countries as of May 1 more than a million barrels will be cut. OPEC+ countries, 5 At the meeting in October 2022, daily oil production as of November 2022 2 million barrels of reduction. OPEC+ member countries, announced the announcement before the OPEC Market Monitoring Committee meeting held yesterday., Sunday night, made.
According to energy analysts, this is an "unknown situation." Because “it means we are making voluntary cutbacks before the meeting., making a statement knowing that prices will jump, It shocked everyone.” Mediterranean Countries Energy Companies Association, Oil and Gas Director, Chat Karbuz, He says that Russia and Saudi Arabia are behind this operation..
“They did it on purpose,” says Karbuz.: “Oil price 85 from dollars 80 it was down to dollars. 15 we're talking about a monthly bottom. OPEC's main meeting will also be in June. There may be an operation to prevent the fall before this meeting. There may be other reasons. They might have thought of all of them and said let's take one shot." According to Karbuz, OPEC+ members 4 market, 1also with political content 5 gave a message. Here are those messages:
1-Group member countries, In the second half of this year, they have already taken a step so that their oil production does not exceed the demand..
2-Responded to speculators' shorts. “If you short more, we'll make you cry".
3-The real goal is not to increase prices, to prevent it from falling.
4-They did it to say "This is our base price" without being named..
It's a kind of "70 dollars not worth it" to the market., We need to give a higher price as a base” message… They are targeting $80s.
5-The political message is: It was known that relations between Saudi Arabia and the United States were bad.. However, this announcement, There was an official move that the Saudi Arabian and Russia duo went to bloc.. Of course, it was also discussed with China..
Karbuz stated that Russia's struggle with the Anglo-Saxon-centered Western bloc has become widespread and this is reflected in the oil market from a geopolitical point of view., “There was an economic war targeting Russia and China.. This announcement is a collective cry of the southern bloc against it," he said..
energy analyst, doesn't really believe there will be cuts for two reasons: “The first is: Once, this cut decision was made for May.. what happened today, market pricing the cut. This will be reflected in short-term prices.. The second reason, they are already unable to produce in their current quota. That's why they can't cut. It's just a threat to a short-term price increase.”
Baghdad, Agreed with IKYB on oil export
Iraqi Kurdish Regional Government (KRG) and the Iraqi government agreed to restart oil exports to Turkey this week. KRG Spokesperson, He said the Iraqi government and the KRG reached an agreement to restart oil exports to the north this week.. spokesman, Baghdad said it would notify Turkey to request the resumption of pipeline flows.
Lawk Ghafuri, head of foreign media affairs of the KRG, In a post on Twitter, he said:: “After several meetings between the Kurdish Regional Government and the federal government,, A preliminary agreement was reached this week on the resumption of oil exports via Ceyhan.. This deal, The oil and gas bill will remain in effect until approved by the Iraqi Parliament.”
very important move
BBC Television Middle East Representative Sameer Hashmi:
This surprising statement, important in many ways. Despite the price fluctuations in recent months, especially towards the end of the year, there were concerns that global oil demand would outpace supply.
The rise in oil prices following Sunday's announcement could potentially put further pressure on inflation – worsening the cost of living crisis and increasing the risk of recession.. Interesting thing is, the fact that this announcement was made the day before the Opec+ meeting…
from members, there were signs that they would stick to the same production policy, so there would be no new cuts, so this was a big surprise. There is a possibility that more members of the group will voluntarily make cuts.. They can even tighten the stocks even more…
Development, likely to further strain ties between the US and Saudi Arabian-led Opec+. White House, He had called on the group to increase supply to lower prices and control Russia's finances.. But Sunday's announcement, He also underlines the close cooperation between oil-producing countries and Russia..