• 4 minutes The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas
  • 4 days European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe.
  • 18 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days "How Long Will The Epic Rally In Energy Stocks Last?" by Tsvetana Paraskova at OILPRICE.COM
  • 5 days "...too many politicians believe things that aren’t true." says Robert Rapier
  • 6 days Demonising fossil fuels has caused major grid problem in Australia
  • 6 days Welcome to Technocracy - The New World Energy Order... "1000s Of Sydney Homes Plunged Into Darkness As Aussie 'Price Cap' Policy Sparks Energy Shortage"
  • 8 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"

Breaking News:

Oil Likely To Hit $200: SEB Group

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Why OPEC Won’t Open The Taps

  • Middle Eastern OPEC producers have made it clear that they do not plan to increase production beyond the current OPEC+ quotas.
  • The producers believe that the current price rally has been driven by geopolitical factors rather than market fundamentals.
  • Saudi Arabia’s energy minister did recognize that years of underinvestment in oil exploration was now causing risks on the supply side.

Middle Eastern OPEC producers have no plans to increase production beyond their OPEC+ quotas, a gathering of ministers this weekend has made clear.

The energy minister of the biggest oil producer in the cartel, Saudi Arabia, said that the pandemic had taught oil-producing nations one thing, and that was caution, Reuters reports.

"Caution, a word that I know some people hate me for, but... I will continue being cautious and (mindful of) the need to retain flexibility in our strategy and adopt a long-term perspective," Prince Abdulaziz bin Salman said.

His stance was echoed by Iraq's oil minister, Ihsan Abdul Jabbar Ismail, who said that the cartel should stick to its original plan of adding 400,000 bpd in combined production every month to avoid surprises.

His UAE counterpart, Suhail al Mazrouei, for his part, blamed the latest price rally on geopolitical factors.

"We are all hoping for the de-escalation... I think our plan has been working, and I don't believe that the market is hugely under-supplied currently. It's the other factors that are outside our hands which are impacting the market," al Mazrouei said, as quoted by Reuters.

Yet geopolitical tensions spikes tend to have a transitory effect on prices, while OPEC+'s failure to stick to its own production quotas suggests a deeper inability for most producers to boost production as much as agreed.

Saudi Arabia's bin Salman recognized this, commenting that the world's oil-producing nations may not be able to provide the supply necessary for the global economy to recover fully from the pandemic. For this, the energy minister blamed years of underinvestment in oil exploration.

One might be tempted to think that OPEC is looking after its own interests in refusing to boost production, but it appears that current oil prices are too high even for the oil-producing nations. As several OPEC officials said earlier this month, higher oil prices contribute to inflation, which is a serious problem for most OPEC members, and sap the demand for oil.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Dave on February 21 2022 said:
    I think it's a show, I think there struggling to reach quotas as it is, so not only can they not realistically raise rates, but they also won't because further failures to meet rate increases will signal weakness, politically and economically. They will likely need time and capital reinvestment into there fields to rebuild production and reliability.

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News