Oil prices lower in Asia trade, potential OPEC+ output hikes cited
There has been no let-up on the offer in oil with prices falling further during the Asian timezone so far.
I've been posting on the upcoming OPEC+ meeting:
- post (link here) on the March 4 meeting: OPEC+ will be making a decision on April output,
- Oil - OPEC+ meeting week - Russia, Saudi are potentially on opposite sides of the pump it up debate
An overnight summary from ANZ raises similar concerns on a potential boost in output, in brief:
- traders look ahead nervously to the OPEC meeting
- with signs that the recovery in demand is wavering, the sustainability of the price rally would be under threat if supply rose too sharply
- OPEC+ ... is currently holding back around 7mb/d from the market, or about 7% of the world's crude. The last meeting saw Saudi Arabia surprise the rest of the group by announcing an additional 1mb/d cut outside of the agreement. This could see alliance members once again turn to the kingdom to provide the bulk of support to the market, even if others call for higher quotas.