Bankinter | OPEC+ to increase oil production by +206,000 bpd from April. The increase is justified by the fact that the global economic outlook is stable and oil reserves are low.
Bankinter analysis team’s view: This decision has been taken by Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Algeria, Kazakhstan and Oman. It is part of the objective of gradually introducing into the market the 1.65 Mb/d of voluntary cuts announced in April 2023. There is no reference to it being related to the attack on Iran and the need to ease tensions in the event that the Strait of Hormuz is closed.
For reference, OPEC+ produces 42.44 Mb/d (total global production is approximately 100 Mb/d). In any case, we believe that it will not be able to moderate the rise in oil prices expected today (Brent rises above 8% before the opening).
We reiterate our recommendation to tactically buy companies in the oil sector. Oil infrastructure: Halliburton, SLB, Baker Hughes and Técnicas Reunidas. Oil companies: Chevron, Repsol and Eni.
