OPEC+ Journalist Zandi
Zandi adds:
Trouble still looming over OPEC+ standoff.
OPEC+ source: Efforts underway to postpone OPEC+ meeting
Archives of “Crude” category
rssOPEC+ meeting said to still be scheduled to start at 1300 GMT later today
No OPEC+ resolution since last week
The UAE remains the sticking point as they want a revision to the baseline output. In other words, they want to be among the ones pumping more i.e. have a greater share of the pie and who wouldn’t when prices are soaring at the moment.
The proposal for the 400k bpd increase in output per month starting from August isn’t likely to be threatened but unless the UAE gets what they want, there won’t be any compromise on that front and that is where we are at now.
The meeting later today is said to proceed as per scheduled at 1300 GMT.
Saudi Arabia’s energy minister says to UAE he wants “compromise and rationality” on OPEC oil deal
Reuters have a recap up now if you’d like to check it out:
- “Big efforts were made over the past 14 months that provided fantastic results and it would be a shame not to maintain those achievements. … Some compromise and some rationality is what will save us”
In calling for “compromise and rationality” is the Saudi energy minister saying the UAE’s resistance to the deal so far is uncompromising and irrational? Or is that just my take on it? (Don’t think so). Monday’s meeting could be very fiery indeed ….
Saudi Energy Minister Prince Abdulaziz bin Salman with his tip for oil prices:
Oil giant Vitol expects oil prices to continue higher – more demand to outrun supply increases
A Vitol executive speaking over the weekend, said that the 400K barrel per month (through to the end of this year) increase in supply being proposed by OPEC+ is insufficient to hold prices from rising.
- “There is very little doubt, that whatever OPEC agrees by way of lessening of the cutbacks it will surely …. be a fraction of that amount needed to meet demand,”
- “OPEC are in a big chunk of the way towards their stated objective of getting the global inventory overhang back to manageable levels from their perspective, which is basically 2019 norm and we still have a market which has an outlook which for the spot months there is going to be more demand than supply.”
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I posted earlier, and over the weekend on the continuation of OPEC+ talks scheduled for today, Monday.
- Saudi energy minister comments ahead of Monday’s continued OPEC talks
- Heads up weekend news – OPEC+ talks will resume on Monday
Long story short is that the OPEC+ coalition proposes to
- bump its collective crude output by 400,000 b/d each month from August to December
- and extend their supply management agreement through the end of 2022
However, the UAE wants its output allowance raised and has not yet agreed to the proposals.
—
Vitol is the world’s largest independent oil trader.
Crucial Update : #BRENT #WTI #NATURALGAS –#AnirudhSethi
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UAE has agreed to a one-month delay in making the decision, but….
OPEC+ meeting continues
The latest from the OPEC+ meetings is that the UAE as agreed with a one-month delay in making the decision on easing the production cuts, but Russia has opposed the suggested delay.
So the stalemate continues
More OPEC+ tweets from OPEC Intel Amena Bakr
OPEC+ meeting is in session
Crude oil is currently trading at $75.11 or up nine cents.
OPEC+ scheduled meeting July 1, now postponed to Friday.
Reuters conveying a statement from Iraqi Oil Minister Ihsan Abdul Jabbar, to the effect that:
- the OPEC+ meeting has been postponed until Friday
- is to enable completion of consultations and discussions, so they work towards agreement
I posted earlier on this delay here:
- A big Friday coming up – NFP and OPEC+ meeting (they need more time!)
- UAE wants to increase its production significantly
- cuts would have to come from Russia and Iraq to accommodate the higher UAE output
OPEC+ JMMC proposes to OPEC+ to extend oil supply mgt until end of 2022
Headlines from OPEC+ JMMC sources
- OPEC+ JMMC proposes to OPEC+ to extend oil supply management until end of 2022
- OPEC+ ministerial committee proposes to OPEC+ to raise oil output by 0.4M BPD a month in August-December. This was congruent with early reports
The price of crude oil reach day high price of $76.20 earlier after breaking above the earlier high at $74.42 and squeezing any shorts ahead of the OPEC+ meeting.The prices since rotated back to the downside and each day low of $74.59. As long as the price can remain above the $74.42 level, the bias tilt intraday remains in the favor the buyers.
BREAKING :Saudi Arabia, Russia reportedly reach preliminary deal on raising oil output
Reuters reports on the matter
This pertains to the OPEC+ meeting later in the day and it is no surprise to see deals/accords struck prior to the meeting itself. A 500k bpd overall increase is the baseline figure to expect so we’ll see if there are any other details in the hours ahead.