OPEC+ Stands Pat: Output Steady Amidst Geopolitical Storm

During a brief virtual meeting on Sunday, OPEC+ ministers agreed to keep oil output quotas unchanged, seemingly ignoring the geopolitical earthquake triggered by the US intervention in member-state Venezuela.

Silence on Politics, Focus on Fundamentals

The alliance, led by Saudi Arabia and Russia, avoided discussing the arrest of Venezuelan President Maduro. Instead, the focus remained on the fragile balance of supply and demand.

The Strategy: Managing the Glut

The cartel's passivity regarding the Venezuela crisis highlights its primary concern: Demand. With global demand softening and non-OPEC supply (particularly from the US and Guyanas) surging, OPEC+ is fighting to defend a price floor.

Oil Market Reaction

Traders have largely priced out a supply disruption risk. WTI Crude remains stuck below $58, suggesting the market believes the supply cushion is thick enough to absorb even a major regime change in a founding OPEC member.