OPEC cites downside risk to summer oil outlook, holds demand forecast
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.
