Output cuts to remain at the agreed July level until an agreement is found
From oil market correspondent, Amena Bakr:
So in the absence of a new agreement, Opec-plus production cuts will remain at the agreed July level of about 5.7 million barrels per day in August and beyond. #OOTT #opec
The standoff continues as both the UAE and Saudi are licking their wounds for now before coming back to the table surely in the weeks ahead.
Despite this, oil prices retreated yesterday after an attempt to push above the 2018 highs of $76.88 but evidently profit-taking was the name of the game as we approached the key technical level. Some thoughts from yesterday:
Elsewhere, oil is near the 2018 highs now and that warrants some light scaling out of longs after the good run since April. My argument here is solely from a technical perspective as I don't see an outright run towards $100 coming any time soon.That said, the break of the 2018 highs could set off momentum towards $80 next and that might be where buyers pause for some breath after the run in the past few weeks.For now, baby steps. We're near the 2018 highs already and that itself could spark some room for buyers to take some money off the table amid the uncertainty and mess created by OPEC+, though the lack of a deal i.e. less supply is a good thing in the short-term.
