Particle.news
Download on the App Store
17 ARTICLES
·
23m ago

OPEC+ Prepares Live Vote on August Supply as Oil Retreats on Eased Middle East Tensions

Analysts warn that continued output increases may trigger a supply glut despite U.S. rig counts falling to their lowest since October 2021.

A pumpjack operates at the Vermilion Energy site in Trigueres, France, June 14, 2024. REUTERS/Benoit Tessier
An oil tanker unloads crude oil at a crude oil terminal in Zhoushan, Zhejiang province, China July 4, 2018. REUTERS/Stringer/File Photo
A view shows oil pump jacks outside Almetyevsk in the Republic of Tatarstan, Russia June 4, 2023. REUTERS/Alexander Manzyuk/ File Photo
Image

Overview

  • OPEC+ will decide on August production live at its July 6 meeting after Russia’s Deputy Prime Minister Alexander Novak confirmed there will be no pre-meeting negotiations.
  • The alliance has rolled back 2.2 million barrels per day of voluntary cuts since April through four straight increases of 411,000 bpd.
  • Brent and WTI futures each slid about 1% to the mid-$60s on Monday after the U.S.-brokered Iran-Israel ceasefire drained the wartime risk premium.
  • U.S. oil rigs dropped to 432 last week, marking the lowest count since October 2021, and China’s teapot refineries imported a record 1.8 million bpd of Iranian crude in June.
  • Morgan Stanley projects Brent could fall to around $60 a barrel by early next year on forecasts of a 1.3 million bpd supply surplus in 2026.