With just 2 days to go before the next crucial OPEC+
monthly meeting, the main players in the cartel are under increasing pressure
not to extend their output cut for another month.
India, for example, the world’s third biggest
consumer, asked the organization not to resort to what it called, ‘artificial
cuts’ in order to boost the price.
This is not the first time that India expressed its
displeasure over the production cuts by the OPEC+, as it affected the prices at
pumps significantly in recent weeks; it could potentially derail the slow
recovery of the Indian economy that suffered the worst recession in 70 years.
Of course, OPEC+ has its own interest to pursue,
having being caught up in a downward spiral of plummeting oil price. At the
same time, it cannot completely ignore the grievances of its most important customers.
In China, the second biggest consumer of crude oil
in the world, meanwhile, there is news regarding a drop in production growth in
February. If the trend continues, it goes without saying that crude import by
China will drop and OPEC+ short-term goals may suffer too.
When OPEC+ meets on March 4, it will be compelled to
walk the tight rope while striking a balance. Markets are already nervous about
the outcome, clearly reflecting it on the oil prices.
