A Reuters poll on Wednesday showed OPEC oil production should fall in May after OPEC+’s voluntary production cuts, helping the market.
according to investigationOPEC production fell by 460,000 barrels per day since April and by more than 1.5 million barrels per day since September, but production increases by some OPEC+ countries offset the decline.
In May, six OPEC members voluntarily agreed to cut production by 1.04 million barrels per day, adding to the existing 1.27 million barrels per day.
The inquiry comes after the Russian government said last week that OPEC+ would not cut production further, sending oil prices lower. At the same time, last week Saudi Arabia threatened oil speculators ahead of the next OPEC+ meeting (June 4).
OPEC appears to be trying to shun speculators who profit from predicting OPEC+ market decisions.
Minister of Energy, Saudi Arabia Prince Abdulaziz bin Salman made threats last week, which may lead to concerns for some another output cut That would push prices up and punish short sellers.
“I keep advising them (citing oil speculators) that they’re going to get hurt, they got hurt in April, they don’t need to show their cards. I’m not a poker player, but I just want to say be careful,” warned the energy minister. As of May 16, oil short positions stood at 184 million barrels per day, up 140% from the previous month’s short positions.
wednesday morningGoldman Sachs commodities analysts expect OPEC+’s nine major producers to voluntarily cut output to “use hawkish rhetoric to partially offset while keeping output on hold,” they said. Stated.
saudi arabia Fiscal breakeven point Oil prices are $78 a barrel this year, but could actually go higher depending on spending needs to balance the budget.
By Charles Kennedy, Oilprice.com
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