OPEC+ outcome: will it make any difference, even if the US is third time lucky?

[hemanthaa@mail.com + 64]

As some analysts eagerly awat the latest move by the OPEC+, there are plenty of others who believe that there are lots of factors at play at present, eclipsing the OPEC+ decison - in the long run. 

The former hope that the latest US appeal, with direct presidential connotations, to increase the production will not fall on deaf years - this time. Even if it works this time,however,  there are many factors that can derail the gains in the long run. 

China's economic downturn, for instance, is a key issue that cannot be ignored. Its manufactuing is on a downward spiral since March and China's never ending quarrels with its neighbours and the West show no sign of abating, which do not help reverse the trend. The technological companies, meanwhile, are slowly planning to leave the World's second largest economy over crackdown on privacy issues, fearing hefty fines; it could add further pressure on the beleagured technological sector, which has come under heavy scrutiny by the administration recently.

Faced with a serious energy crisis in light of rising fuel prices, China's moves in the next few weeks will potentially skew the deamnd for crude oil from where it is at present. 

In these circumstances, even if the OPEC+ increases the output to appease its major customers - and not to make the US upset - it will pale into insignificance in the coming weeks.

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[Starschy + 211]

Opec is more interested to optimize net profit margin. A small increase up to 500000 Barrels a day seems the right path. Joe Biden can not change it.

[hemanthaa@mail.com + 64]

A modest increase will help the consumers to some extent. Otherwise, the OPEC+ will suffer in the long run.