Just a quickie to summarise where the oil market is standing mid-week after the abandoning of OPEC+ negotiations with no deal.
- Oil was dumped Tuesday US time(see chart below)
- Early signs from the OPEC+ meeting were that most members supported an increase of 400kb/d each month in August, September, October, November and December ... that is 2m barrels extra by the end of this year
- based on the agreement being extended until the end of 2022
- But, the United Arab Emirates (having invested plenty of capex to enable increased production) said "No", which stopped an agreement being reached
- The lack of agreement is expected to further tighten oil supply even as demand rises as economies recover as a trend
- On the other hand a lack of unity at OPEC may lead to less oil market stability (increased output unilaterally amongst members .... this has not yet been seen (just noting this)
- No further talks are said to be on the horizon (until the next planned meeting)
- The US administration is pressuring the parties disagreeing (i.e Saudi Arabia & UAE is what it boils down to) to reach a deal
What have I missed?
Want to keep track of oil prices? ForexLive has free charts here (see below for the code for an oil chart, boxed, although others are available also):
