OPEC+ agrees to maintain its current production quota policy

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Although everything seems to have returned to normality in terms of what humanity recently experienced with the Covid-19, OPEC+ remains firm in respecting its decision to reduce oil production by 2 million barrels per day or, in other words, to reduce production to 2% of world demand, this has been proposed since November of this year and is expected to continue to be maintained.

Logically, these measures are not convenient for countries that do not govern the commercialization of oil through the OPEC+ market and which are mostly oil buyers, since they would have to buy crude oil above the prices that could be obtained if OPEC+ were to increase its production.

The current world economy suggests an increase in production, since an increase in production will lower oil prices and therefore the prices of its derivatives, such as gasoline, so that the quota of lowering production from 2 million barrels per day will only end up being 1 million barrels per day.

I believe that world geopolitics is confused and between a rock and a hard place, since many countries that complain about the high oil prices are the same ones that with their decisions can make the price of a barrel of oil rise even more.

For example, it is decided to apply an EU embargo on Russian crude oil, when we all know that Russia contributes a large amount of the total OPEC+ oil production, so reducing that demand for Russian oil will push the prices even higher.

I can conclude by adding that if the OPP meetings are held too late, it could have an impact on the world economy, since the production quotas would remain the same, which would not change until the next meetings, which are scheduled for February 2023, we can only wait and see what decisions OPEC + takes for the benefit of the world economy.