OPEC+ vows to continue cooperation for benefit of global economy

Oil prices rose more than $1 a barrel on Wednesday after reports of a disruption to Libya’s top oilfield added to supply concerns emanating from tensions in the Red Sea.
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RIYADH: The Organization of the Petroleum Exporting Countries on Wednesday reaffirmed their “steadfast commitment to the shared objectives of unity and cohesion both within the organization” and with its allies also known as OPEC+.

In a statement, the oil producers’ group the efforts of OPEC+ “have been evident in supporting the global economy to overcome challenges over the past years and have ensured market stability.”

“The unprecedented levels of cooperation, dialogue, mutual respect, and trust will continue to be the basis for these continued collaborative efforts going forward. This is for the benefit of all producers, consumers, and investors, as well as the global economy at large,” the group added in the statement.

Daily trading

Oil prices rose more than $1 a barrel on Wednesday after reports of a disruption to Libya’s top oilfield added to supply concerns emanating from tensions in the Red Sea.

Brent crude was up $1.34 or 1.8 percent at $77.23 a barrel by 1450 GMT, while US West Texas Intermediate crude futures rose $1.29 or 1.8 percent to $71.67 a barrel.

Protests have forced a partial reduction in output at Libya’s 300,000 barrel per day Sharara oilfield, two engineers told Reuters.

“The Sharara shutdown certainly adds to pricing upside, especially of Brent,” said Viktor Katona from Kpler, who assessed the disruption as likely short-lived.

Oil prices had climbed around $2 earlier this week after attacks on vessels in the Red Sea by Yemen’s Houthis.

Meanwhile, expectations of ample oil supply in the first half of 2024 have contained prices ahead of OPEC+ plans to hold a meeting of its Joint Ministerial Monitoring Committee in early February.

An exact date has not been decided, three sources from the alliance told Reuters.

The market’s focus will return to the demand side and whether central banks can deliver the soft landing they have aimed for, said OANDA analyst Craig Erlam.

“Any outperformance for the global economy would ease the burden on OPEC+ at a time when compliance with quotas looks like it’s going to be a struggle,” he said.