“OPEC+”’s First Position on Withdrawing from Emergency Reserves

Three OPEC+ sources told Reuters that the alliance of major oil producers is not currently discussing halting crude production increases, despite the move by the United States and other consumer countries to withdraw from emergency reserves.

The United States and a few other countries agreed to pull out of reserves after failing to convince OPEC+ to pump more crude, while a jump in US gasoline prices increased pressure on President Joe Biden. amid high inflation and a decline in its popularity.

OPEC+ says the world will soon face new oversupply despite the oil price soaring to its highest level since 2014 above $85 a barrel.

OPEC+ will meet next week to discuss the balance between supply and demand in the oil markets.

The group is adding 400,000 barrels per day to its inventory every month to end the record production cuts in place since last year, currently rising to 3.8 million barrels per day.

Oil market analysts indicated OPEC+ could halt production increases after major consumers draw on reserves.

The Wall Street Journal said Saudi Arabia and Russia are considering such a move, while the UAE and Kuwait are not convinced a pause in productivity gains is necessary.

A Kuwaiti energy sector official told Reuters that talks ahead of the OPEC+ meeting next week have not yet started.

“That’s why Kuwait has no position yet,” he added.

And the Biden administration announced on Tuesday it would pull millions of barrels of oil from its strategic reserve, working with China, India, South Korea, Japan and Britain, to try to calm prices, after reports that OPEC+- producers call for more raw pump.

(Reuters)

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