The group of 23 oil-producing countries known as OPEC+ announced a cut in production at its recent meeting in Vienna. The move sparked a sharp backlash from leaders in Washington amid concerns about high energy prices and their impact on the global economy.
OPEC+ countries, particularly Saudi Arabia, defended the decision by pointing to the weak economic outlook depressing oil demand. Others concluded geopolitics may have been at play given the relationship between OPEC+ countries and Russia.
In Washington, calls for retaliation were immediate. Proposals included a cessation of arms sales to Saudi Arabia, legislation to strip OPEC+ of its immunity from antitrust lawsuits, or new releases from the Strategic Petroleum Reserve.
Was the market in need of a production cut? And how much did geopolitics play a role in OPEC+’s decision?
This week host Jason Bordoff talks with Amrita Sen.
Amrita is the co-founder and chief oil analyst at Energy Aspects. She leads their analysis and forecasting of crude and products markets. Amrita was formerly the chief oil analyst at Barclays Capital. She holds a masters in economics from the University of Cambridge and a PhD in economics from SOAS University of London.
Amrita’s deep understanding of the complexity of the global energy sector, along with a wealth of industry contacts and experience, gives her a unique perspective on market outlook. Earlier this month, she warned clients that U.S. shale output could peak in 2024.
Together, Jason and Amrita discuss the rationale behind the OPEC+ cuts and the influence of geopolitics. They also talk about the U.S. response and production outlook for the next few years.