Overnight Market Review (December 02) OPEC+ decided to maintain the production policy unchanged until the end of 2023
OPEC+, composed of 23 oil producing countries, decided to maintain the existing production reduction policy from November this year to the end of 2023, that is, to reduce production by 2 million barrels of oil per day, accounting for about 2% of global demand.
The statement released on OPEC’s official website shows that the decision is based on market considerations, which is a necessary and correct course of action to stabilize the global oil market. It is worth mentioning that the meeting reiterated its previous views, and will adhere to a proactive and pre-emptive approach, and take additional measures in a timely manner to respond to price changes, so as to support the balance and stability of the oil market.
Slowing global growth, soaring inflation and the impact of high interest rates on oil demand were reasons for “continued caution” as OPEC+ wanted to ensure market stability.
Sources said that OPEC+ currently hopes to assess the impact of the next series of sanctions on Russian oil on the market and observe the oil demand outlook of some countries before making a decision. If necessary, OPEC+ can hold a special meeting temporarily and respond in a very short time.
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