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Oil risks overheating after Opec+ leaves output unchanged

An employee shows a sample of crude oil in the Yarakta oilfield, owned by Irkutsk Oil Company (INK), in Irkutsk Region, Russia, in this picture illustration taken March 11, 2019. [Reuters]

By deciding to leave production unchanged for another month at its meeting on Thursday, Opec+ risks causing the oil market to overheat and creating conditions for more instability in the future.

The expanded group of oil exporters defied the expectations of a majority of analysts and traders that it would respond to escalating prices and an intensifying backwardation in the futures market by raising output.

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Opec Oil