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Volatile Markets Keep Opec-Plus Cautious  

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With less than a week before Opec-plus meets on Aug. 3, delegates say there is still no firm proposal on a new oil policy for after the current producer supply deal expires at the end of August. However, consensus has emerged around adopting a cautious approach to better manage exceptional oil market volatility. Deal expiry aside, this meeting will be carefully watched, especially as it comes after US President Joe Biden’s visit to Saudi Arabia, which didn’t result in any immediate oil production increase from the kingdom or any other Gulf Opec states. US officials tell Energy Intelligence they are still hopeful that the upcoming meeting will result in some joint effort to gradually add more supply, which they believe would help cool off oil prices. But with spare capacity still tight and only Saudi Arabia and the United Arab Emirates able to immediately ramp up supply, any increase in production is likely to be modest, according to delegates. Overall, the Opec-plus alliance could come to a smooth agreement on a new output policy since all member states see value in continuing to manage the markets jointly.

Topics:
Opec/Opec-Plus, Opec-Plus Supply , Oil Supply
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