OPEC Says Supply Surplus Was Main Reason For Oil Production Cut
(Bloomberg) -- An excess of supply in the oil market was the main reason for OPEC+ opting to cut production earlier this month, according to the group's secretary-general.
“We see a surplus in the fourth quarter,” Haitham al Ghais told reporters at the Adipec energy conference in Abu Dhabi. “We also see a surplus also in early parts of 2023 because of the great uncertainties surrounding the economic growth forecasts. That was the main reason we took the decision to be proactive.”
On Oct. 5, the Organization of Petroleum Exporting Countries and its partners -- a 23-nation alliance led by Saudi Arabia and Russia -- angered the US by announcing they would lower their output targets from November by 2 million barrels a day.
US President Joe Biden said there would be “consequences” for the Saudis. His top energy diplomat, Amos Hochstein, who also attended Adipec on Monday, has said there was no economic rationale for the cut.
Al Ghais said it was possible the global economy was already shrinking.
“Whether it will be severe or not is another issue,” he said. “Europe is definitely in a recession; the US is potentially heading toward recession. These economic things will have impact on oil demand.”
--With assistance from .
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
