OPEC on Thursday flagged downside risks to summer oil demand as part of the backdrop to shock output cuts announced by OPEC+ producers on April 2, although the producer group maintained its forecast for global oil demand growth in 2023.
Some members of OPEC+, which includes OPEC, Russia and others, announced new voluntary production cuts on April 2. The unexpected move has prompted oil to rally towards $87 a barrel from below $80.
OPEC+ gave little information on the reasons for the surprise cuts, saying in a statement they were a “precautionary measure” to support market stability. Some OPEC delegates told Reuters they did not know the exact reasons for the reduction.
