The industry generally believes that the international oil price is maintained at 60-80 US dollars / barrel, which is an ideal interval. Too high and too low oil prices will harm the interests of certain industry stakeholders.
$70/barrel, exactly between $60 and $80/barrel, is an important psychological barrier. According to industry insiders, for the entire oil and gas industry, this price point means that all parties can benefit.
The price of $70/barrel for oil and gas producing countries can allow OPEC members to keep their fiscal deficits within reasonable limits and support US shale oil and gas producers to continue to increase production. For oil and gas consuming countries, the price of about 70 US dollars / barrel is affordable from the economic and industry levels, and does not have a large negative impact on the demand side.
In short, everyone at this price thinks “just right”.
The original intention of OPEC+ was also to hope that OPEC member countries and important oil producers Russia can coordinate the output plan and strive to stabilize the international oil price within a reasonable range to protect the interests of all parties.
We can also see that OPEC+ has made continuous efforts to balance the oil market. However, it is well known that the long-term stability of international oil prices in a certain range is a difficult problem that the oil market has been unable to overcome. The shocks are still not uncommon. Because the factors affecting the oil supply and demand fundamentals have always been complicated, especially some sudden and uncontrollable geopolitical factors.