OPEC+ Members Cut Oil Production by 1.15 Million Barrels Per Day

In the CCPM Forecaster, we always remind traders of the need to monitor news that can impact commodities pricing.  

We normally don't post articles related to news because this is a research-based website offering unique insights for paying subscribers. Quite simply, posting news stories is beneath our capabilities and strengths.

Given that we just broadcast the April 2023 CCPM Forecaster webinar presentation, we wanted to alert subscribers of this news so they can factor it into their trading strategy. 

Basically from May through the end of the year, OPEC+ members just announced plans to cut oil production by up to 1.15 million/bpd. 

You can read the details of the announcement elsewhere as needed.

As you might have suspected, Russia leads the cut with a reduction of 500,000 barrels. Global production is currently just over 100 million/bpd, so the cut accounts for only 1 percent of the total. But the cut comes at a time when oil pricing has been trending down, thereby helping to lower inflation.

Clearly, the cut in oil output stands to benefit Russia by lifting oil pricing. This comes at time when the country is reportedly facing severe economic and financial issues due to sanctions related to its war with Ukraine.

Moreover, we believe the production cut will put a nice bottom in oil prices, at least for now.

Finally, as you might imagine the cut by the Saudi-led OPEC+ group adds to already bruised U.S.-Saudi Arabia tensions.