Vienna May 5 2022: OPEC+ members meeting on Thursday are expected to agree a marginal increase in oil production, bolstered by risks to demand amid coronavirus restrictions in China.
Russia’s invasion of Ukraine has also added to supply concerns, which have increased with Europe’s announced moves on a potential Russian oil embargo.
Prices soared on Wednesday, with Brent North Sea crude closing above $110 a barrel, its highest level in two and a half weeks.
But analysts said the new surge would not shake the 13 members of the Organization of Petroleum Exporting Countries (OPEC), led by Riyadh, and their 10 partners led by Moscow.
“It is likely that OPEC will stick with its plan despite ongoing instability relating to the Russia-Ukraine conflict,” XTB analyst Walid Kudmani told AFP, citing “prospects of falling demand due to widespread lockdowns seen in China as a result of rising Covid cases”.
As in previous months, the cartel is likely to open the taps at 432,000 barrels per day for June, a strategy begun in the spring of 2021 when the economy began recovering after the drastic cuts imposed amid the shock of the pandemic.
The talks will begin with technical discussions at the ministerial committee meeting at 1100 GMT in Vienna, the headquarters of the cartel.
