31 January 2023 | Regulation | Announcements

OPEC+ remains cautious on oil demand in China and supplies from Russia

OPEC+ is taking a cautious approach on oil, waiting for China's renewed economic activity and new limits on supplies from Russia. Delegates said OPEC+ will stand for preserving the same levels of black gold output at Wednesday's meeting.

China's decision to partially lift COVID restrictions has already boosted tourist’s activity. Domestic traffic increased by 80%. Analysts at Goldman Sachs claimed that the bulls have the upper hand in the commodities markets. Experts from Trafigura anticipated a sharp rise in oil prices as well. 

Besides, global supplies of fossil fuels may also decrease. This is due to new sanctions on imports of Russian petroleum products, scheduled to enter into force on February 5. Therefore, oil production in Russia is likely to decline by 15%, as reported by the International Energy Agency (IEA). Moreover, it should be mentioned that Russia is known as the major producer in OPEC+. 

But it is still not enough for the coalition to ramp up oil production. 

Helima Croft, head of commodity markets strategy at RBC Capital Markets LLC, said oil manufacturers have no plans to boost their output until there are some clear signs that demand in China continues to recover. 

Company MarketCheese
Reserve Bank of Australia policy tightening keeps AUDCAD at yearly highs
21 June 2024 62
After correction, gas prices are ready for new wave of growth
20 June 2024 147
Selling GBPUSD if Bank of England officials support rate cut
20 June 2024 59

Listed among the best MarketCheese authors
1st in the segment "Oil and gas"
EURUSD will make another attempt to consolidate at level of 1.076
19 June 2024 104
Continue to buy Brent but keep in mind that downward pullback is upcoming
19 June 2024 111

Listed among the best MarketCheese authors
1st in the segment "Oil and gas"
Fall in UK inflation will put pressure on GBPUSD
18 June 2024 109
Go to forecasts