Crude Oil Markets: OPEC+ meeting next week may not rock the boat

 

OPEC+ meeting on June 1, 2021

Crude oil price is back in the green territory, having been volatile for most part of yesterday in light of the data that came from India about its oil consumption – and the inevitable impact on its economy.

By gathering data from three major sources, including statistics on the community mobility in the vast country, the EIA, Energy Information Administration of the US, declared the previous day that the way crude oil sector suffered was much worse than expected.

The crude oil markets reacted to the grim news and the crude oil price lost the momentum of upward price trend – temporarily; markets cannot ignore the Indian factor, as the country is the third largest crude oil importer – and consumer.

Having ridden the Indian tide rather uncomfortably, the crude oil markets now keenly watch the latest OPEC+ meeting, scheduled for next week. The group is meeting on Tuesday, June, 1, to assess the market conditions with respect to the increased output of crude oil.

The indications are they will stick to the increased output for the period of May to June.

The meeting, next week, is going to be a special one: Iran, a major member of the group, is about to enter the markets as a normal trading nation, hoping to see the back of the sanctions; the members will certainly weigh the anticipated, additional Iranian output against hypothetical fears of an impending oil glut; Iran may assure members that its organizational obligations would be honoured despite it being in urgent need of petro-cash.

Russia, meanwhile, said recently that there is still a supply shortfall of over 1millions bpd, despite the increased supply from the OPEC+.

In this context, the OPEC+ may not create unexpected ripples in the crude oil markets with surprise moves.

Popular Posts

Wil Iran attack Israel soon? Only time will tell!

Image
  Credit: Google Maps With Iran's threat against Israel in a direct strike, the tension in the Middle East went up a few notches on the scale of uncertainty, as the United States made it clear once again that it would not be a passive observer if a conflict erupts. The rising tension came in the wake of the daring attack carried out by Israeli F-35 fighter jets on the building that was adjacent to the Iranian embassy in Damascus, the Syrian capital. Seven Iranian nationals, along with a few Syrians, died in the attack, two of them were from the elite Iranian IRGC - Republican Guards; they were very high ranking officers. In response to the attack, Ayatollahs Ali Khamenei, the Iranian  supreme leader, said that Israel will be punished in kind, during an Eid message on Wednesday; he did not imply in what form the retaliation could come; nor did he say whether it was imminent, leaving the ambiguity open to interpretation by military and political analysts. The supreme leader, however,
Read more

The Sun goes on Vacation: total solar eclipse - April 8, 2024

Image
Total Solar Eclipse: April 8, 2024: Vivax Solutions The lucky folks along a relatively narrow geographical band, from Mexico all the way to Canda, are going to witness a rare celestial spectacle on Monday, April 8 – a total solar eclipse. The path of totality – where people can witness total darkness - cuts across fifteen US states, before rolling into Canada in its final mesmerising leg. In mathematical proportion to the excitement, the enviably famous American entrepreneurial spirit has already gone into full swing: the hotel bookings, closer to the path of totality, have gone up exponentially and so have the prices; in addition, traders lost no time in springing into action in promoting related merchandise and of course, safety goggles, while implying that exercising caution before looking heavenward is a virtue, indeed.    The excitement that borders on ecstasy is perfectly understandable: astronomical charts show that there will not be another total eclipse for twenty years th
Read more

Will Venezuela manage to extend the period of waiver of sanctions?

Image
  Chart:www.oilfutures.co.uk | Data: OPEC As the 53rd JMCC, Joint Ministerial Monitoring Committee, of the OPEC+ is scheduled to take place on April 3, analysts are looking at every possible scenario that could rise in the aftermath of such a meeting. A consensus has already emerged among them that the OPEC+ would stick to its production quota for each member country. That means the official position of the OPEC+ will maintain the current production cuts as long as necessary, without increasing the production to appease the influential customers.  The cartel wants to stick to the production targets, already agreed upon, in 2024 without unnecessarily worries about the potential consequences.  With the OPEC+ sticking to it guns, without increasing the output, the top consumers of oil turned to Venezuela to buy it on the cheap as the former was given a waiver to increase the production and then sell, provided that free and fair elections will be held before the waiver expires. Venezuela i
Read more

Latest Energy News from EIA