By Alex Lawler, Rowena Edwards and Maha El Dahan
LONDON/DUBAI, March 16 (Reuters) - OPEC+ considers this
week's slide in oil prices to a more than one-year low to be
driven by financial fears, not any imbalance between demand and
supply, and expects the market to stabilise, four delegates from
the oil producer group told Reuters.
Oil sank to a 15-month low on Wednesday, with Brent crude
below $72 a barrel, on concerns about contagion from a banking
crisis. Crude stabilised on Thursday after Credit Suisse was
thrown a financial lifeline by Swiss regulators.
"It's purely financially driven and has nothing to with the
demand and supply of oil," one of the delegates said, asking not
to be named. OPEC+ is "most likely wait and see" in expectation
that the situation will "normalise soon".
Three other delegates from the OPEC+ producer group
comprising the Organization of the Petroleum Exporting Countries
(OPEC), Russia and other allies, made similar remarks.
The comments will dampen any speculation that OPEC+ is
concerned about weakening prices and might consider further
steps to support the market. The group's next policy meeting is
not until June, though an advisory panel of key ministers meets
on April 3.
One of the delegates said OPEC's latest monthly oil market
report, released on Tuesday with an upgraded demand forecast for
China, pointed to a sound balance between supply and demand.
"We are focusing on market fundamentals," another of the
sources said.
Last November, with prices weakening, OPEC+ reduced its
output target by 2 million bpd - the largest cut since the early
days of the COVID-19 pandemic in 2020. The same reduction
applies for the whole of 2023.
Ministers from Algeria and Kuwait this week praised the
decision and Saudi Arabia's energy minister told Energy
Intelligence that OPEC+ will stick to the reduced target until
the end of the year.
(Reporting by Alex Lawler, Rowena Edwards and Maha El Dahan
Editing by David Goodman)
Messaging: alex.lawler.reuters.com@reuters.net))
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