Sources exclude the recommendation of a committee in «OPEC Plus» to change the production policy
Crude oil prices stabilized, during trading yesterday, Tuesday, amid concerns about the slowdown in the global economy and the expected increase in US oil stocks, which was offset by hopes for a recovery in fuel demand from China, the largest oil importer in the world.
Brent crude rose 0.3 percent to $88.19 a barrel by 14:11 GMT, and US West Texas Intermediate crude rose 0.3 percent to $81.87 a barrel.
This week, traders are watching for more business data that could indicate strength in global economies during earnings reporting season.
And the dollar hovered yesterday, near its lowest level in nine months against the euro, and gave up the gains it recently recorded against the yen, at a time when dealers are assessing the prospects for a recession in the United States, as well as the path of the Federal Reserve (Central Bank of America) regarding Benefit.
Crude oil prices in physical markets started the year higher as China, which is no longer operating under coronavirus restrictions, showed signs of more buying, and traders feared that sanctions imposed on Russia could lead to tighter supplies.
Meanwhile, Reuters quoted 5 sources in the “OPEC Plus” group as saying yesterday that the Joint Ministerial Monitoring Committee is likely to maintain the group’s current oil policy at its scheduled meeting next week, as oil prices rose, supported by hopes for a recovery in Chinese demand. But the impact of this was offset by economic concerns.
The ministers of the “OPEC Plus” group, which includes the Organization of the Petroleum Exporting Countries (OPEC) and independent producers led by Russia, will meet on February 1 via the Internet. The JMMC may call a full meeting of the group if necessary.
This meeting comes with the rise in oil prices in 2023, approaching $90 a barrel, supported by hopes for a recovery in Chinese demand, while the European Union and the Group of Seven countries are expected to expand the maximum range for Russian crude prices to include refined products, starting from the fifth of February.
Five sources told Reuters that the Joint Ministerial Monitoring Committee will discuss the economic outlook and the size of Chinese demand, adding that it is unlikely that the committee will propose any amendments to the current policy. One of them mentioned that the recovery of oil in 2023 makes any adjustments excluded.
Another Source said: “We will definitely discuss the Chinese economy and inflation. There is no expectation for this meeting. This will not be a meeting of OPEC Plus, but only the Joint Ministerial Monitoring Committee without decisions or recommendations.
UAE Energy Minister Suhail Al Mazrouei said on January 16 that the market is balanced, echoing earlier statements by Russian Deputy Prime Minister Alexander Novak. Both participate in the Joint Ministerial Oversight Committee.
The sources said, “OPEC Plus is somewhat relaxed at the moment. Because the difficult time of the impact of Covid is behind us, and because the geopolitical situation and recovery in China are driving the fluctuations.
At the last meeting of OPEC Plus in December, the group kept its production policy unchanged, and will not set a date for its next full meeting before June.