StanChart Alerts That OPEC+ May Drop Production Reductions in Upcoming Gathering

Potential Changes Ahead for OPEC+ Production Policies

According to a report shared with Rigzone by Standard Chartered, Emily Ashford, who leads Energy Research at Standard Chartered Bank, cautioned that the upcoming OPEC+ gathering scheduled for April 5 may lead to the discontinuation of both voluntary and compensation output reductions.

Ashford noted that the April 5 meeting could prompt OPEC+ members to halt compensation cuts and accelerate the return of oil supplies to the market, opting instead for increased production wherever feasible. She indicated that the eight OPEC+ nations currently implementing extra voluntary measures might use this event to completely reverse the remaining adjustments established in April 2023.