OPEC+ meeting from weekends from weekend, increasing oil production more than expected:
- OPEC+ to increase output by 548,000 BPD in August 411,000 BPD in July
In fact, this decision returns to about 80% of the 2.2 million BPD voluntary deductions from eight OPEC growers in the market.
- The actual output growth has been smaller than the plan so far
- Most of the supply is from Saudi Arabia
OPEC+ quoted
- Stable global economic outlook
- Healthy market basic principle
- Low oil inventions
As reasons for releasing more oil.
Analysts have replied:
- Increased production represents more aggressive competition for market share
- OPEC+ is showing some tolerance to the resulting decline in both prices and revenue
Price response:
- Oil prices fell more than just 1% at the Globex Open on Sunday evening
Goldman Sachs gets a slightly bigger boost in the next meeting, which is scheduled for August 3:
- Last 550,000 BPD growth for September is expected
Update:
This article was written by Eamonn Sheridan at www.forexlive.com.
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