LONDON — Top oil-producing countries led by
Saudi Arabia and
Russia announced another modest increase in output on Wednesday
despite soaring crude prices and geopolitical tensions rattling the markets.
اضافة اعلان
The 23-nation OPEC+ group said in a statement that it will
increase production by 400,000 barrels per day in March, the same amount as in
previous months.
The group, which includes the 13 members of the Saudi-led
Organization of the Petroleum Exporting Countries (OPEC) and their 10 allies,
including Russia, has resisted US pressure to further boost production to tame
prices.
OPEC+ said in its statement following a ministerial
videoconference that the decision was made "in view of current oil market
fundamentals and the consensus on the outlook".
The alliance's prudent approach dates back to the spring of
2021 as demand recovered after drastic 2020 cuts in the face of the COVID-19
pandemic.
The announcement Wednesday "was hardly surprising, as
the group has rigidly followed this approach since it was first agreed upon,
even in December when oil prices plunged following the emergence of
Omicron," said Edward Gardner, commodities expert at Capital Economics.
"What matters going forward is whether OPEC+ can keep
up with its planned production increases," he said.
Oil prices hit seven-year highs in January, with the main
international crude contract, Brent, topping $90. Prices are now hovering under
$90.
Victoria Scholar, an expert at Interactive Investor, said
she expected "further gains" due to solid demand and "drip-feed
production increases" by OPEC+.
Struggling to meet quotas
OPEC+ is already struggling to meet its quotas with some
members, such as Angola and Nigeria, unable to scale up their production and
others, such as Saudi Arabia and the UAE, unwilling to do so, said Carsten
Fritsch of Commerzbank.
In December, the total volume of
OPEC+ output increased by
only 90,000 barrels per day, far short of the 400,000 target, according to a
survey by the Bloomberg news agency.
Russia was complying with its commitments, Moscow's energy
minister,
Alexander Novak, told Rossiya 24 television.
But there were "a number of uncertainties"
weighing on demand while the coronavirus pandemic was still ongoing, he said.
The market has been further boosted by soaring geopolitical
tensions plaguing stalwarts of oil production — Russia, Saudi Arabia and the
UAE.
The UAE on Monday intercepted another ballistic missile
launched by Yemen's Houthi rebels, the latest attack on the Gulf country, which
is part of a Saudi-led military coalition.
In Europe, tensions between Moscow and Western allies are at
their highest point since the Cold War after Russia massed troops on its border
with Ukraine.
"Ukraine-Russia (tensions) can only keep pushing it up
as long as the situation keeps getting worse," said Neil Wilson, analyst
at
Markets.com.
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