Enverus Intelligence Research does not foresee any further OPEC+ action at its next meeting in June, Chet Sharma, a senior associate at the company, revealed to Rigzone.
“Given the latest rounds of cuts by the OPEC+ group last month, we see strong fundamental support for Brent to break above $100 a barrel in the back half of the year and do not foresee any further OPEC action + in June,” Sharma said. .
“Despite our relatively low expectations for global oil demand growth in 2023, we see little prospect of global supply growth to fill the gap left by Russia and the rest of OPEC+ while meeting new incremental demand Sharma added.
“We expect global crude oil inventories to decline significantly, especially in the second half of the year,” said the Enverus Intelligence Research representative.
Asked what he thinks will happen now at the next OPEC+ meeting, Stephen Brennock, oil analyst at PVM Oil Associates, told Rigzone that he suspects the meeting will be a “non-event.”
“The group’s recent decision to further cut production has effectively closed the door on any further action at the June meeting,” he said.
Voluntary cuts
The latest meeting of the Joint Ministerial Monitoring Committee (JMMC) on April 3 indicated a voluntary adjustment of production by Saudi Arabia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, Oman and Gabon from May until the end of 2023, a statement was released. on the OPEC website earlier this month.
This will be in addition to the production adjustments decided at the 33rd OPEC and non-OPEC Ministerial Meeting and the voluntary adjustment announced by the Russian Federation of 500,000 barrels per day until the end of 2023, the statement said.
“Accordingly, this will bring the total voluntary production adjustments of the countries mentioned to 1.66 million barrels per day,” the statement said.
“The meeting noted that this is a precautionary measure aimed at supporting the stability of the oil market,” he added.
At the 33rd OPEC and Non-OPEC Ministerial Meeting, which was held in October 2022, OPEC+ decided to adjust its global production by two million barrels per day from production levels required from August 2022, from November 2022, a separate statement published on the OPEC Featured Site.
OPEC+ meeting
At its previous OPEC and non-OPEC ministerial meeting, which was held on 4 December 2022, OPEC+ decided to hold the next OPEC and non-OPEC ministerial meeting on June 4, according to a statement published on the OPEC website in December last year.
The statement posted on the OPEC site earlier this month noted that the next JMMC meeting is scheduled for June 4.
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