Oil markets to remain bullish following Opec+ decision to ease cuts – The National

Oil markets to remain bullish following Opec+ decision to ease cuts – The National

Much of the alliance's projected increase is expected to be absorbed domestically, leading to an undersupplied market

















Opec+, led by Saudi Arabia and Russia has been cutting back 9.7m bpd from the markets since May, with the pact set to expire by the end of July. AP Photo







The slow phase-out of the historic production cut made by the Opec+ alliance is likely to have a bullish impact on oil markets, analysts say.



The joint ministerial monitoring committee of the group, which meets monthly to oversee compliance, on Wednesday evening recommended easing the level of cuts to 7.7 million barrels per day from August 1 onwards.



The group, led by Saudi Arabia and Russia, has been cutting back 9.7m bpd from the markets since May.





The current pact, the deepest ever cut implemented by the group, helped to counter oversupply concerns as demand and prices plummeted at the height of the coronavirus pandemic in April.



The JMMC is also bringing laggards who previously failed to meet agreed supply curbs in line, exacting pledges from Iraq, Nigeria, Kazakhstan and Angola to make compensatory cuts until September.



With the additional cuts,