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OPEC Tightens the Market

Written by ESAI Energy | April 3, 2023

OPEC+ surprised the markets with a decision by its largest members to voluntarily cut oil production by about 1.0 million b/d. The cuts will take effect in May and supposedly continue until the end of the year. Crude oil prices have risen and have further to go. This latest move by OPEC+ will not occur in a vacuum, however, and we may see more supply from other countries and maybe even from strategic stockholders. Moreover, the voluntary nature of these cuts bears watching.