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Quick Context: OPEC+’s Deep Papercut

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Quick Context: OPEC+’s Deep Papercut

Rollercoaster pre-meeting news flow yields to large 2 MMbpd headline cut, but extensive quota underproduction means an effective cut of less than half that volume

Rory Johnston
Oct 5, 2022
20
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Quick Context: OPEC+’s Deep Papercut

www.commoditycontext.com

This Quick Context event response concerning today’s OPEC+ meeting is exclusive to paid Commodity Context subscribers.

Become a paid subscriber today to view this full OPEC+ meeting reaction report and join me in my hunt for ever-deeper oil & gas market context.

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  • OPEC+ agreed to a 2 MMbpd headline cut to the producer group’s target crude output

  • Chronic underproduction across OPEC+ (and basing the cut on typical quotas instead of current production) means that the effective cut will be less than half that amount, likely around 0.89 MMbpd.

  • The politics around this meeting became especially fiery as the decision approached and today’s outcome is likely just the latest in an increasingly politicized tit-for-tat exchange in the world’s most important commodity market.

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