The Organization of the Petroleum Exporting Countries and its allies are likely to push through with the planned output hike in their meeting next week, with prices rebounding from this month’s drop.
- Traders, analysts, and OPEC+ delegates widely expect the group to ratify the next monthly installment, as global uncertainties have eased and concerns on China’s economic recovery toned down.
- The plan includes resuming full production in monthly increments of 400,000 barrels a day until late 2022, as initiated by Saudi Energy Minister Prince Abdulaziz bin Salman. Most watchers expect no changes in the next meeting.
- Analysts believe the recent decline in prices was temporary and overdone, and conditions point to the group sticking with the plan. It has already resumed an estimated 45% of production volume halted last spring.
- Prices fell roughly 15% in the first three weeks of the month to $11 a barrel, amid the reimposition of quarantine restrictions in China due to the spread of the COVID-19 delta variant. Prices have since recovered with Brent at $72 a barrel.
The next OPEC+ meeting is scheduled for Wednesday, September 1.
WTI is up 2.17% at $68.88 a barrel, while Brent is up 1.90% to $72.42 a barrel.