- 2021 was a challenging year for OPEC+ as prices began to recover, presenting a temptation that has always been difficult to resist.
- OPEC+ exercised restraint, however, refusing to open the taps even as energy prices skyrocketed across the globe.
- OPEC+ officials have noted that the energy transition, if not managed well, could lead to underinvestment in oil and gas, which could mean even higher prices.
The year 2022 could be a great year for OPEC+ producers, reports Oil Price.
OPEC+ production cuts
OPEC+ did some surprising things in the past two years. First, it broke up at the start of the pandemic with its two leaders—Saudi Arabia and Russia—turning on each other because of differences of opinion on how the crisis needed to be handled.
Then the two made up, and the group united around the deepest production cuts in the history of OPEC in response to the demand destruction caused by the pandemic, also unprecedented.
All in all, 2020 was a year of unprecedented events.
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Source: Oil Price
