Will Demand Concerns Force Middle East Producers To Cut Oil Prices

Less than a month following the announcement of OPEC+ production cuts, oil prices have gone back to where they were before. As difficult as it is to fathom the real-time concerns of the oil group, in case the output target curtailments were a deliberate measure to maintain a pricing range of 70-80 per barrel in the midst of severe macroeconomic headwinds, it worked. In case the expectation was that prices would stay high for longer, then the overall effect has dissipated relatively quickly. For Middle Eastern pricing in May 2023 the OPEC+ production…