OPEC+ Blocks Press At Vienna Talks
The media usually covers OPEC+ meetings. These meetings affect the price of oil.
OPEC+ won't allow certain big news sources to join their meetings. The meetings are happening in Vienna, Austria this coming weekend.
The talks refused to admit Reuters, Bloomberg News, and The Wall Street Journal.
When OPEC+ meets, it affects oil prices and financial markets. Many news outlets, like The Financial Times, get invited to these meetings.
The Financial Times was informed by sources that a ban has been imposed by a group. The reason for the ban is not known. People suspect that Saudi Arabia's troubles in maintaining oil prices could be the cause.
Last week at Qatar Economic Forum, Saudi Arabia Energy Minister Prince Abdulaziz warned market speculators to be careful. He's annoyed by people who make money from OPEC+ decisions. Prince Abdulaziz is the leader of OPEC and OPEC+ group.
On Sunday, OPEC+ and Russia will meet. They plan to make a decision about oil production for the rest of the year.
The group cut output by 2mbpd since October 2022. They did this because the demand decreased. It was a surprise to the market when they announced an additional cut of 1.16mbpd in April.
Journalists still plan to go to the event. They want to talk to ministers outside the official meetings.
The IEA says the oil supply will decrease in the second half of 2023. This is because China will need more oil when it eases its Covid restrictions.
Meeting Demand Through Production Adjustments
Some people think Prince Abdulaziz hinted at more cuts before the meeting. There weren't many reporters at the event.
Goldman Sachs analysts predict that OPEC+ won't change production levels this weekend. OPEC+ members have told Reuters that there will be no change in production cuts, though that could change depending on people's "mood."
According to OPEC+, oil demand will increase to 2.33mbpd in 2021. This is because non-OPEC supplies are expected to rise by 1.4mbpd.
Adi Imsirovic, a senior research fellow, thinks Prince Abdulaziz is not thinking about the consequences of his words. This is according to The Financial Times. Prince Abdulaziz is a former energy trader.
Imsirovic said that if you threaten to cut supply but then don't, prices will drop. However, if Saudi Arabia cuts and Russia doesn't, Russia will lose market share.
