On Thursday, OPEC+ will have its second and last day of discussions, with sources predicting the group is unlikely to vote to pump extra barrels into the market beyond August.

OPEC+ resolved in early June to boost production by 648,000 barrels per day (bpd) per month in July and August, up from a prior agreement to add 432,000 bpd each month.

In a study, Commerzbank analyst Carsten Fritsch stated, “Confirmation of this is likely to be a mere formality today,” “What is more important is what will happen next.”

OPEC+ comprises the Organization of Petroleum Exporting Countries and its supporters, including Russia.

The talks begin at 1100 GMT with an advising Joint Ministerial Monitoring Committee meeting, followed by a full OPEC+ meeting.

Washington applauded the producers’ decision in June, which came after months of Western pressure on OPEC+ to increase output to help down oil prices.

International prices reached their highest level since 2008 when the West slapped sanctions on Russia for its invasion of Ukraine, which began on February 24 and is described by Moscow as a “a special military operation”

They have subsequently retreated, but have risen beyond $115 this week due to low supplies and concerns that OPEC may be unable to increase production.

This week, French President Emmanuel Macron informed US President Joe Biden that Saudi Arabia and the United Arab Emirates, the two OPEC members with large spare capacity, can scarcely expand production. more info

Next month, Biden will go to the Middle East, particularly Saudi Arabia, and is largely anticipated to encourage Riyadh to increase output.

At least five OPEC+ members have said that Thursday’s meeting would be focused on confirming August production regulations rather than discussing September.

Two additional OPEC+ delegates said that the problem of output beyond August may arise, but they did not know what actions could be done.

Source: Reuters


Please enter your comment!
Please enter your name here