What will happen to petrol prices at the pump? We may have an answer to that question on Sunday. The OPEC+ oil-producing countries and their allies, including Russia, will then hold a major consultation. In it, countries decide whether to reduce their production in January.
We can quickly see the consequences of this decision at the pumping station. Because if countries choose to cut production, that could mean higher prices at the pump. Due to international market forces, lower oil availability usually automatically leads to a higher price.
There is much at stake in the talks between OPEC+ members and their oil-producing allies. They have recently witnessed a sharp drop in oil prices. This is mainly due to concerns about strict coronavirus lockdowns in China, the world’s largest importer of oil.
But interest rate hikes by central banks also have an impact. As a result, the global economy is cooling down which in turn leads to a decrease in the demand for oil. And so OPEC+ members have cause for concern. There has been a lot of speculation in recent weeks about how they would deal with their issues.
Perhaps good news for Dutch motorists
Press Agency Reuters reported this weekend on an internal basis that OPEC+ will likely stick to its previously planned production cut of two million barrels a day. If that actually happens, it could be good news for Dutch motorists. Though it won’t remove the uncertainty in the oil market.
For example, there is much uncertainty about the consequences of the new price ceiling set by the European Union for Russian oil. Last Friday, EU countries agreed on a maximum price of 57 euros per barrel of Russian oil. This must annoy Russia in the war in Ukraine. That is why an EU boycott aimed at the transport of Russian oil by sea will apply from Monday.
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