For December, OPEC+ said it would continue to reduce oil production by 2.2 million barrels daily. Lower oil prices, along with decreased demand, caused them to postpone production growth from October, and this trend appears to be continuing.
OPEC's Thoughts on Oil Production
Saudi Arabia and OPEC have repeatedly stated that they base their decisions on market principles and the goal of maintaining supply and demand rather than setting a price target. Data and rumors, however, indicate that an increased oil price benefits OPEC nations more because it increases their profit margins. OPEC nations occasionally suffer from low oil prices because the associated expenses increase.
Haitham Al Ghais, the general secretary of OPEC, stated on Monday that the organization has a very optimistic outlook for the short- and long-term oil demand. It's noteworthy that this follows OPEC's current forecasts, which have somewhat decreased. Al Ghais continued by saying that while the organization and markets generally face many difficulties, not all bear negative effects. According to Al Ghais, the US economic system's strength is another advantage, and China's 5% growth is not bad.
