{"id":422245,"date":"2022-03-26T21:35:00","date_gmt":"2022-03-26T18:35:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/commodities-corner-why-opec-is-likely-to-stick-to-its-oil-output-plan-when-it-meets-next-week\/"},"modified":"2022-03-26T21:35:00","modified_gmt":"2022-03-26T18:35:00","slug":"commodities-corner-why-opec-is-likely-to-stick-to-its-oil-output-plan-when-it-meets-next-week","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/commodities-corner-why-opec-is-likely-to-stick-to-its-oil-output-plan-when-it-meets-next-week\/","title":{"rendered":"#Commodities Corner: Why OPEC+ is likely to stick to its oil output plan when it meets next week"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3ab6d6cc5af\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3ab6d6cc5af\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/commodities-corner-why-opec-is-likely-to-stick-to-its-oil-output-plan-when-it-meets-next-week\/#%E2%80%9CCommodities_Corner_Why_OPEC_is_likely_to_stick_to_its_oil_output_plan_when_it_meets_next_week%E2%80%9D\" >&#8220;Commodities Corner: Why OPEC+ is likely to stick to its oil output plan when it meets next week&#8221;<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/commodities-corner-why-opec-is-likely-to-stick-to-its-oil-output-plan-when-it-meets-next-week\/#Myra_P_Saefong\" >Myra P. Saefong<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CCommodities_Corner_Why_OPEC_is_likely_to_stick_to_its_oil_output_plan_when_it_meets_next_week%E2%80%9D\"><\/span>&#8220;Commodities Corner: Why OPEC+ is likely to stick to its oil output plan when it meets next week&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\">\n<\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000725430\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000725430\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       The group of major oil producers known as OPEC+ may keep its production plans in place even as crude oil prices trade at about their highest levels since 2008, and the International Energy Agency warns that the world may soon lose three million barrels of Russian oil a day.<\/p>\n<p> When the Organization of Petroleum Exporting Countries and their allies last met on March 2, the Russian invasion of Ukraine was less than a week old, and the producers stuck to their plan for gradual production increases. Since then,\u00a0oil prices<br \/>\n        CL.1,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/211629951\/delayed\" class=\"negative\">-1.12%<\/bg-quote><\/p>\n<p>        CLK22,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209724739\/delayed\" class=\"negative\">-1.12%<\/bg-quote><\/p>\n<p>        BRN00,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209704782\/delayed\" class=\"negative\">-0.46%<\/bg-quote><\/p>\n<p>        BRNK22,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209705316\/delayed\" class=\"negative\">-0.56%<\/bg-quote><br \/>\n       touched their highest levels\u00a0since 2008 on concerns about the loss of Russian oil. <\/p>\n<div class=\"paywall\">\n       The next meeting of OPEC+ is scheduled for March 31.<\/p>\n<p>\u201cRussia is a key part of the \u2018plus\u2019 portion of OPEC+, so their participation is important,\u201d says Marshall Steeves, energy markets analyst at S&amp;P Global Commodity Insights. That\u2019s a key concern amid the war in Ukraine, along with any sanctions announced following this week\u2019s NATO meetings, he says.<\/p>\n<p>On Thursday, U.S. President Joe Biden announced the roll out of more sanctions against Russia, including measures against 48 large Russian state-owned enterprises that are part of that country\u2019s defense-industrial base and produce weapons that have been used in the invasion.<\/p>\n<p>Meanwhile, the European Union\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/eu-support-grows-for-russia-oil-ban-for-ukraine-war-11647883376?mod=article_inline&amp;adobe_mc=MCMID=40243853429742797413982730448035217469%7CMCORGID=CB68E4BA55144CAA0A4C98A5%40AdobeOrg%7CTS=1647901618&amp;mod=article_inline\" class=\"icon none\">has been considering a ban<\/a>\u00a0on the purchase of Russian oil. The U.S. banned Russian energy imports, and the United Kingdom said it would phase out imports of Russian oil by the end of the year.<\/p>\n<p>A complete loss of Russia oil output could send Brent futures above $200 a barrel, says Steeves.<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetPullQuote\n            inline\n    scope-web|mobileapps\n  article__inset\n          article__inset--type-InsetPullQuote\n            article__inset--inline\n  \"><\/p>\n<div class=\"wsj-article-pullquote article__inset__pullquote \">\n<p class=\"pullquote-content article__inset__pullquote__quote\">\n        <span class=\"l-qt article__inset__pullquote__mark--left\">\u201c<\/span>\u201cRussia is a key part of the \u2018plus\u2019 portion of OPEC+, so their participation is important.\u201d<span class=\"r-qt article__inset__pullquote__mark--right\">\u201d<\/span><\/p>\n<p>        <small><br \/>\n          <span class=\"inset-author article__inset__pullquote__author\">\u2014 Marshall Steeves, S&amp;P Global Commodity Insights<\/span><br \/>\n        <\/small><\/p><\/div>\n<\/p><\/div>\n<p>       In a March 16 monthly report, the IEA said that three million barrels a day of Russian oil supply may be cut off from global markets starting next month, after some Western nations levied harsh sanctions on Moscow and\u00a0some traders, energy companies, and shipping firms shun Russian crude.<\/p>\n<p> Russia\u2019s oil exports affect \u201cvarious geographies differently,\u201d says Regina Mayor, KPMG global head of energy. For the U.S., there is \u201cvery minimal impact,\u201d as Russian crude imports represent only 2% of supply. However, Europe is the most reliant on Russian imports, most notably for natural gas, she says. \u201cIt will be a challenge for the EU to switch quickly to other sources.\u201d<\/p>\n<p>Russia exported 7.8 million barrels\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.iea.org\/reports\/russian-supplies-to-global-energy-markets\/oil-market-and-russian-supply-2\" class=\"icon none\">a day of crude and condensate<\/a>, as well as oil products, in December 2021, according to the International Energy Agency.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>The \u201cseverity of restrictions\u201d will be crucial in determining how many countries buy Russian oil, and that is an \u201cevolving process,\u201d says Eric Chenoweth, senior investment analyst at Scout Investments. Trade flows may need to make \u201chard adjustments\u2014shifting from pipelines to tankers,\u201d for example.<\/p>\n<p>Earlier this month, the Biden administration\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/u-s-officials-meet-with-regime-in-venezuela-to-discuss-oil-exports-to-replace-russias-11646591752?mod=article_inline\" class=\"icon none\">was looking to ease oil sanctions on Venezuela to help lower prices<\/a>, The Wall Street Journal reported. There have also been talks between world powers and Iran to revive the 2015 nuclear deal, which would probably lead the U.S. to ease Iranian oil sanctions.<\/p>\n<p>It\u2019s clear that the U.S. is looking to these countries as potential new supply sources, but investors aren\u2019t likely to rush to fund new output in \u201criskier jurisdictions,\u201d said Chenoweth. The United Arab Emirates is one of the \u201cstandouts that could add barrels sooner.\u201d The IEA says Saudi Arabia and the U.A.E.\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.iea.org\/reports\/oil-market-report-march-2022\" class=\"icon none\">hold most of global spare capacity<\/a>.<\/p>\n<p>Despite tight supplies, OPEC+ has so far stuck to its plan to raise monthly production by 400,000 barrels a day.<\/p>\n<p>Chenoweth says OPEC+ may be largely out of spare production capacity by the end of 2022, so he doesn\u2019t expect it to deviate much from its output plan at the March 31 meeting. The IEA has said that even if OPEC+ boosts output beyond the current plan, it would take about four to eight weeks for the extra Persian Gulf barrels to reach consuming markets.<\/p>\n<p>There isn\u2019t a whole lot OPEC can do in the short run, Chenoweth says. The group would have to \u201cgo through an investment cycle before it is able to add significant capacity beyond what it will reach this year.\u201d\u00a0<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Myra P. Saefong\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/topics\/journalists\/myra-p-saefong\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/MktwSaefong\",\"text\":\"@MktwSaefong\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:mpicache@marketwatch.com\",\"text\":\"mpicache@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Myra_P_Saefong\"><\/span>Myra P. Saefong<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-7B11-B62F257A775A%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Commodities Corner: Why OPEC+ is likely to stick to its oil output plan when it meets next week&#8221; The group of major oil producers known as OPEC+ may keep its production plans in place even as crude oil prices trade at about their highest levels since 2008, and the International Energy Agency warns that the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":422246,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-328731\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-422245","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/422245","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=422245"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/422245\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/422246"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=422245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=422245"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=422245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}