MON. 03 APRIL 2023-theGBJournal | Oil price jumped to around $85 per/barrel Monday after a surprise announcement by world’s largest producers to cut production by 1.15 million bpd from May. The UAE, Saudi Arabia, Oman and Kuwait all agreed to voluntarily reduce their production.
While OPEC members said the move is intended to support market price stability, analysts suggest that the OPEC+ move is an attempt to keep oil price above $80 per barrel in the medium term, given that demand could be hampered by a weakening global economy.
Economists on the other hand are arguing that the biggest intraday move in over a year threatens to tighten the market and, potentially add to inflationary pressures on world economy.
Goldman Sachs has already issued a revision of its oil price forecast, raising it to $95 from $90 at the end of 2023. Its Brent crude forecast for 2024 is $100 from an earlier $97.
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