Decision on OPEC+ output hike likely this week

Decision on OPEC+ output hike likely this week

This week’s meeting of Opec and its allies will be crucial in defining oil market dynamics since the current production cut accord that has been in place for years will be fully rewound as of August end, allowing members the choice to raise their output.

While the Opec+ Joint Technical Committee meeting will be held on Tuesday, the Ministerial Monitoring Committee meeting will be held immediately post this, with the outcome expected by Thursday. WTI prices are taking support and resistance at $95 & $ 102 levels. Brent support and resistance are seen at $103.50 & $ 112 levels, says Vijay Valecha, chief investment officer, Century Financial.

Saudi officials have stressed that any decision to pump more oil will be taken within the framework of Opec +, which will hold its next meeting on August 3.

“We listen to our partners and friends from all over the world, especially the consuming countries,” Saudi Foreign Minister Prince Faisal bin Farhan has said. “But in the end we will follow market conditions and will provide energy as needed.”

However, some analysts believe that it would be difficult for Opec+ to boost supply, given that many producers are already struggling to meet production quotas. The Opec+ group