The last OPEC+ meeting has been shaping the news for a while. While many see the decision as political, for us at CMarkits it was not surprise and we have been expecting a cut in the end of 2022 since Q2 given the continued hawkish policy of the Fed which is expected to affect global oil demand. OPEC can never watch the markets collapsing and do nothing, its main function is to preserve market stability. Last week decision shows a real proof that this group is neutral and technically driven in the midst of global geopolitical crises.
Another important outcome of this meeting was the extension of the agreement for one full year, a very important basis for stability as we move towards 2023, which seems to have been overlooked.
We discussed with Sean Killian Evers of Gulf Intelligence the rationale of OPEC+ decision and in particular the role of Saudi Arabia in shaping this policy.
Full discussion: https://lnkd.in/dfCJM4QD