Insight-Opec+’s ostrich problem: It is ignoring Ukraine

Changing landscape: A tanker loads its cargo of liquefied natural gas at the port of Prigorodnoye, Russia. The Ukraine crisis is about to cause a major shift in the underlying supply and demand fundamentals. — AP

THE decision by the Organisation of the Petroleum Exporting Countries and allies (Opec+) to stick to its plans for only a small increase in crude oil output in April shows the producer group is increasingly disconnected from the new reality of the market following Russia’s invasion of Ukraine.

The group that houses Opec and its allies – including Russia itself – agreed on Wednesday to maintain a long-planned 400,000 barrels per day (bpd) production increase next month.