Chronicle of raw materials

Oil: OPEC + makes a symbolic gesture

Audio 01:38

The logo of OPEC, the Organization of the Petroleum Exporting Countries headquartered in Vienna, Austria.

REUTERS/Leonhard Foeger

By: Marie-Pierre Olphand Follow

2 mins

After months of quasi-status quo, OPEC member countries and their allies have decided to increase the quantities of crude put on the market.

A mostly symbolic gesture.

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Even if they will only put 200,000 barrels more per day on the market, the OPEC countries and their allies have moved up a gear.

A way out of their cautious attitude, while still sparing Russia.

Since the start of the war, OPEC+ has never taken a decision that goes against Russian interests.

This additional volume does not change the situation: it will not be enough to replace the million barrels of Russian oil produced less every day, and allows OPEC to remain in a certain neutrality and unity.

Contrary to what some voices suggested before the meeting, Russia was not ultimately left out of the production quota agreement.

Arbitration so as not to upset anyone

The gesture makes it possible to respond, at least symbolically, to Western demands to release more crude.

This decision appears as a direct response to the president of the AIE, assures an expert.

Fatih Birol, head of the International Energy Agency, said last week that he feared fuel shortages, particularly diesel, in Europe this summer.

This decision is also in fact an indirect response to the European embargo on Russian oil which has just been the subject of an agreement on Monday 30 May.

Very limited impact on prices

By opening the floodgates, OPEC+ therefore manages not to ignore the concerns of the West, its first client, and at the same time succeeds in not killing the goose that lays the golden eggs: with prices that remain above of 110 dollars per barrel, the coffers of producing States are filling up and it is not the additional 200,000 barrel days that will cause prices to fall.

Especially since demand in China should pick up again.

We should not expect either, according to our interlocutors, a significant fall in the price of refined oil, that is to say the price at the pump paid by the consumer.

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• Oil