Saudi giant Saudi Aramco’s oil refinery on September 18, 2019 near Al Khardj, south of Riyadh (AFP / FAYEZ NURELDINE)
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The members of OPEC + decided Thursday to limit the increase in their production to 400,000 barrels per day in December, despite the insistence of consuming countries for a larger gesture to moderate the rise in prices while the United States has displayed their dissatisfaction.
The alliance’s monthly production “will be adjusted upwards by 400,000 barrels per day for the month of December,” the Organization of the Petroleum Exporting Countries (OPEC) said in a statement released after a summit. bringing together its thirteen members and their ten allies via the Opep + agreement.
The twenty-three ministers meeting by videoconference have therefore chosen not to deviate from their roadmap.
In response, a spokesman for the United States National Security Council (NSC) said on Thursday that the United States would “examine the full range of tools” at its disposal to remedy “the imbalance between supply and demand. “of oil, which drives up prices.
“The time has come for the main producing countries to stabilize energy prices and ensure that high prices do not hamper the current global economic recovery,” he added, appearing to refer to a coordinated initiative of the consuming countries to draw on reserves.
“We have spoken with energy consuming countries and we will be looking at the full range of tools at our disposal to build resilience and public confidence,” the US official concluded.
The market, very nervous since the start of the week, has turned into the red.
In New York City, a barrel of West Texas Intermediate (WTI) for the month of December ended down $ 2.05 or 2.53% to $ 78.81, the lowest for almost a month.
In London, the price of a barrel of North Sea Brent for January delivery fell $ 1.45 or 1.76% to $ 80.54, also returning to its level of a month ago.
“The market is full of rumors about a potential coordinated initiative to tap into strategic oil reserves to fight rising prices,” said John Kilduff, analyst for the investment advisory firm Again Capital, referring to the United States. but also Japan and the OECD countries.
“The recovery should not be weakened by an imbalance between supply and demand. OPEC + seems unwilling to use its capacity and its power (on the supply of black gold) at this crucial moment of the global recovery “, further lamented the spokesperson for the National Security Council.
– When in doubt, refrain –
The decision of OPEC + was not a surprise, the members of the alliance having distilled several clues in the direction of this decision in recent days.
“The crisis is in a way contained but it is not yet over, we must be careful not to take things for granted,” said Saudi Minister of Energy Abdelaziz bin Salman, leader of OPEC.
The cartel insists on the risk factors hovering over demand in order to justify maintaining its prudent policy, also evoking the new peaks of Covid-19 contamination observed in Russia and China.
Russian Deputy Prime Minister Alexandre Novak, in charge of oil, also insisted on Thursday on the threat of Covid-19 still hovering over demand for oil, during a press conference organized after the summit.
Saudi Aramco oil platform, off Dhahran, Saudi Arabia, March 20, 2018 (Saudi AramcoSaudi AramcoSaudi AramcoSaudi Aramco / Mohamed ALEBN ALSHAIKH)
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This cautious attitude also makes it possible to spare a place for one of its members today excluded from the market, Iran, whose barrels could return to the market in the medium term.
Several observers have also shared their doubts about the ability of some members of the cartel to be able to further increase their production, the drilling installations having suffered during the pandemic from delays in servicing and maintenance.
– Consumers’ grumbling –
“Prices above $ 80 a barrel are, of course, another reason why OPEC + is in no hurry to increase supply on the market,” notes Caroline Bain, analyst at Capital Economics.
If he specifies that OPEC + retains “the margin necessary to react in the event of a strong recovery”, Mr. Novak and his partners have for the moment remained deaf to the calls of consumer countries, in particular the United States, in favor of ‘a more frank increase in production.
Asked about the subject, Ben Salman agreed to “discussions at all levels” with the United States and said “he still believed the group was doing the right thing”.
The next OPEC + meeting is scheduled for December 2, the Organization announced on its website.
bp-ved-vmt / day / them
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