![]() ![]() But there is a bigger reason: spare capacity. It has become ubiquitous, so the sweet spot of the past is not necessarily the sweet spot of the future. One might reasonably wonder why OPEC+ would push for higher prices since current prices are above what the cartel used to say just a couple of years ago was its sweet spot: between $60 and $70 per barrel. From another perspective, the upcoming and any subsequent cuts would cement OPEC+’s place as the ultimate swing oil producer and, of course, lead to a price rise. In this context, the upcoming and any subsequent production cuts would be nothing more than bringing targets in line with production capacity. Russia’s oil production is already down by more than 1 million bpd, too, according to production data. After all, OPEC alone has been falling short of its own production targets by more than 1 million barrels daily for months already. Some have dismissed the talk about a deep OPEC+ production cut. Later, the usual unnamed sources from the cartel came, who said OPEC+ was prepared to make an even deeper cut. Initially, reports said that the idea about a production cut had come from Russia, and it was for a cut of a million barrels daily in output. Last week, rumors began circulating that OPEC+ was considering a production cut amid a substantial decline in oil prices over the last three months. ![]()
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