The Commodities Feed: OPEC+ day – MENAFN.COM

The Commodities Feed: OPEC+ day – MENAFN.COM

Oil prices remain well supported, with ICE Brent still gravitating around US$75/bbl. The market will be keenly following today's OPEC+ meeting, where expectations are that the group will agree on a supply increase in the region of 500Mbbls/d. However, Kazakhstan has reportedly said that the group is considering whether to increase output in August or September. If the latter, that will likely be enough to push the market higher. While attention is clearly focused on what OPEC+ may do in the short term, according to Reuters, the OPEC+ Joint Technical Committee has said that there is a risk that the global market slips back into surplus when the OPEC+ deal ends in April 2022. Yesterday's EIA report was once again constructive, showing that US crude oil inventories fell by 6. 72MMbbls. That marks the sixth consecutive week of declines and takes total crude oil inventories to a little more than 452MMbbls, the lowest level since March last year. In addition, crude oil inventories at Cushing continue to edge lower, falling by 1. 46MMbbls. A tightening in inventory at the WTI delivery hub continues not to only support WTI timespreads, but also the narrowing in the WTI/Brent spread, which is now