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.

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