Latest news with #OPECplus
Time of India
16-06-2025
- Business
- Time of India
Iran-Israel conflict not to alter OPEC trajectory, to continue 2.2 million barrels/ day production cuts: Vandana Hari
Vandana Hari , Founder & CEO, Vanda Insights , says OPEC+ is likely to continue unwinding its 2.2 million barrels per day production cuts, a decision driven more by internal dynamics than external market pressures. Eight member nations are expected to maintain their current course, prioritizing group cohesion. Experts anticipate that the Iran-Israel conflict will not significantly alter OPEC+'s trajectory, as the group focuses on internal stability and solidarity. Things are still pretty much building up when it comes to West Asia. We have already seen a 12% spike on crude in the last one week alone. Where are we headed? Vandana Hari: Whatever risk premium the market had to assign on account of the Israel-Iran tensions is already embedded in crude. We saw most of that jump happening on Friday when Brent and WTI settled higher on the day by about 7%. At one point when the markets opened, crude Brent jumped back towards $78 but very quickly pulled back very similar to the price action we saw on Friday when it actually settled nearly $3 below the intraday high and we have seen the same action this morning. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Knee pain prices might surprise you Knee pain | search ads Find Now What that tells me is that there is a bit of tug-of-war in the market with regard to how much supply risk to assign to this whole situation. As of now, the consensus is there is not a real risk, a threat to supplies from the Middle East or the waterways such as the Strait of Hormuz and the Bab al-Mandab Strait. So, crude will be in a holding pattern. The market will be in a wait-and- watch mode. My base case remains that Iran and Israel's strikes against each other will remain relatively restrained and at least deliberately they will not be targeting the oil infrastructure in the wider region. We know that both of them have targeted to some extent infrastructure in each other's countries, upstream and downstream oil and gas, but the wider Middle Eastern oil production and supply is not under threat as of now. What do you believe the next OPEC plus action could be? Are they going to increase their supply to try and stabilise the market or are they going to hold back to ensure some profits? Vandana Hari: The statement that came out of OPEC on Friday was that they did not see any direct threat to supply, any shortages in the market and no need to act immediately to the situation which was a bit of a contrast to the international energy agency which had earlier issued a statement saying that its members stood ready to put oil into the market from their emergency reserves. Live Events You Might Also Like: Oil stocks in focus as escalating Israel-Iran conflict fuels supply disruption fears So, in terms of what OPEC plus does in the coming months, my expectation before this Israel-Iran conflict broke out was that the eight members that have been accelerating the unwinding of their 2.2 million barrels per day of cuts will remain on that trajectory. They have already done that for three months and I expect them to remain. This is more a response to internal tensions and an attempt to preserve cohesion and peace and calm, solidarity within the group rather than anything necessarily in the market outside. This is OPEC plus turning inwards and looking at what it needs to do to stay intact. I expect OPEC plus to stay on that trajectory. By the time they make their next decision on their monthly budget, the unwinding of the cuts, hopefully the Iran-Israel conflict dust would have settled on it. So, I do not expect this particular conflict to necessarily change that trajectory of accelerated unwinding of OPEC plus cuts.
Economic Times
16-06-2025
- Business
- Economic Times
Iran-Israel conflict not to alter OPEC trajectory, to continue 2.2 million barrels/ day production cuts: Vandana Hari
Vandana Hari, Founder & CEO, Vanda Insights, says OPEC+ is likely to continue unwinding its 2.2 million barrels per day production cuts, a decision driven more by internal dynamics than external market pressures. Eight member nations are expected to maintain their current course, prioritizing group cohesion. Experts anticipate that the Iran-Israel conflict will not significantly alter OPEC+'s trajectory, as the group focuses on internal stability and solidarity. ADVERTISEMENT Things are still pretty much building up when it comes to West Asia. We have already seen a 12% spike on crude in the last one week alone. Where are we headed? Vandana Hari: Whatever risk premium the market had to assign on account of the Israel-Iran tensions is already embedded in crude. We saw most of that jump happening on Friday when Brent and WTI settled higher on the day by about 7%. At one point when the markets opened, crude Brent jumped back towards $78 but very quickly pulled back very similar to the price action we saw on Friday when it actually settled nearly $3 below the intraday high and we have seen the same action this morning. What that tells me is that there is a bit of tug-of-war in the market with regard to how much supply risk to assign to this whole situation. As of now, the consensus is there is not a real risk, a threat to supplies from the Middle East or the waterways such as the Strait of Hormuz and the Bab al-Mandab Strait. So, crude will be in a holding pattern. The market will be in a wait-and- watch mode. My base case remains that Iran and Israel's strikes against each other will remain relatively restrained and at least deliberately they will not be targeting the oil infrastructure in the wider region. We know that both of them have targeted to some extent infrastructure in each other's countries, upstream and downstream oil and gas, but the wider Middle Eastern oil production and supply is not under threat as of now. What do you believe the next OPEC plus action could be? Are they going to increase their supply to try and stabilise the market or are they going to hold back to ensure some profits? Vandana Hari: The statement that came out of OPEC on Friday was that they did not see any direct threat to supply, any shortages in the market and no need to act immediately to the situation which was a bit of a contrast to the international energy agency which had earlier issued a statement saying that its members stood ready to put oil into the market from their emergency reserves. So, in terms of what OPEC plus does in the coming months, my expectation before this Israel-Iran conflict broke out was that the eight members that have been accelerating the unwinding of their 2.2 million barrels per day of cuts will remain on that trajectory. They have already done that for three months and I expect them to remain. ADVERTISEMENT This is more a response to internal tensions and an attempt to preserve cohesion and peace and calm, solidarity within the group rather than anything necessarily in the market outside. This is OPEC plus turning inwards and looking at what it needs to do to stay intact. I expect OPEC plus to stay on that trajectory. By the time they make their next decision on their monthly budget, the unwinding of the cuts, hopefully the Iran-Israel conflict dust would have settled on it. So, I do not expect this particular conflict to necessarily change that trajectory of accelerated unwinding of OPEC plus cuts. ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Asharq Al-Awsat
31-05-2025
- Business
- Asharq Al-Awsat
OPEC+ Oil Producers Announce another Big Hike for July
The world's largest group of oil producers, OPEC revealed Saturday another big increase of 411,000 barrels per day for July. Having spent years curbing production - more than 5 million barrels a day (bpd) or 5% of world demand - eight OPEC+ countries made an modest output increase in April before tripling it for May, June and now July. The eight countries held an online meeting on Saturday to set July production. They also discussed other options, an OPEC+ delegate said. On Friday, sources familiar with OPEC+ talks had said they could discuss an even larger hike. In a statement OPEC+ cited a "steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories" as its reasoning for the July increase, Reuters reported. Algeria was among a small number of nations that requested a pause in the output hikes on Saturday, a source familiar with the matter said. Oil prices fell to a four-year low in April, slipping below $60 per barrel after OPEC+ said it was tripling its output hike in May and as US President Donald Trump's tariffs raised concerns about global economic weakness. Prices closed just below $63 on Friday. Global oil demand is expected to grow by an average of 775,000 bpd in 2025, according to a Reuters poll of analysts published on Friday, while the International Energy Agency in its latest outlook saw an increase of 740,000 bpd. Besides the 2.2 million bpd cut that the eight members started to unwind in April, OPEC+ has two other layers of cuts that are expected to remain in place until the end of 2026.
Al Arabiya
31-05-2025
- Business
- Al Arabiya
OPEC+ agrees further accelerated oil output hike for July
OPEC+ agreed on Saturday to hike July oil output by 411,000 barrels per day (bpd), the same as in May and June, as the group of oil-producing countries continues to bring back supply more rapidly than earlier planned. In a statement issued after a meeting, OPEC+ cited a 'steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories' as its reasoning for the July increase. OPEC+ pumps about half of the world's oil and includes OPEC members and allies such as Russia.
Reuters
23-05-2025
- Business
- Reuters
Kazakhstan sees oil output surpassing plans this year, TASS reports
MOSCOW, May 23 (Reuters) - Kazakhstan will likely exceed its original oil output plans for 2024 of 96.2 million tons due to expansion at the Chevron-led (CVX.N), opens new tab Tengiz field, Energy Minister Erlan Akkenzhenov was quoted as saying, defying pressure from OPEC+. Kazakhstan has cited rising output at Tengiz field as the reason why it has persistently exceeded quotas set by OPEC+, which consists of the Organization of the Petroleum Exporting Countries and allies including Kazakhstan and Russia. Akkenzhenov was quoted by Russian state news agency TASS as telling a podcast late on Thursday that the expansion at Tengiz had been brought forward ahead of schedule this year, raising output there by 25%. Therefore, he said, "we will probably finish the year higher" than the planned production level of 96.2 million tons, which is equivalent to around 2 million barrels per day (bpd). The Kazakh energy ministry did not immediately reply to a request for comment. The country's energy ministry has repeatedly said it is committed to the OPEC+ agreement. Under the latest OPEC+ agreement, Kazakhstan's OPEC+ quota for May rose to 1.486 million bpd from 1.473 million bpd in April. Western oil majors, including Shell (SHEL.L), opens new tab, TotalEnergies ( opens new tab and Eni ( opens new tab, as well as ExxonMobil (XOM.N), opens new tab and Chevron, are active in oil projects in Kazakhstan.
