The news out of the meeting of the oil group:
That 2mn number is misleading, though, as ANZ point out:
- the OPEC+ alliance agreed to cut current production quotas by 2mb/d. However, the group will use outdated production baselines to measure the curbs. That could see the actual fall in production limited to only half that amount.
- Even so, it sent a strong signal to the market that they are going to support the market going forward in a bid to keep prices elevated.
- In addition to the cuts, the supply agreement has been extended until the end of 2023. Saudi Arabian Energy Minister Prince Abdulaziz Bin Salman said that the supply curbs will remain in place until the end of agreement unless the market changes.
Oil price update:
