Oil prices lower in Asia trade, potential OPEC+ output hikes cited


There has been no let-up on the offer in oil with prices falling further during the Asian timezone so far.

I’ve been posting on the upcoming OPEC+ meeting:

An overnight summary from ANZ raises similar concerns on a potential boost in output, in brief:

  • traders look ahead nervously to the OPEC meeting
  • with signs that the recovery in demand is wavering, the sustainability of the price rally would be under threat if supply rose too sharply
  • OPEC+ … is currently holding back around 7mb/d from the market, or about 7% of the world’s crude. The last meeting saw Saudi Arabia surprise the rest of the group by announcing an additional 1mb/d cut outside of the agreement. This could see alliance members once again turn to the kingdom to provide the bulk of support to the market, even if others call for higher quotas.
There has been no let-up on the offer in oil with prices falling further during the Asian timezone so far.

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By Jonathan Prop

Jonathan Prop is an independent financial advisor. He has been working in finance for the last 20 years. After retiring early in his 40s, Jonathan decided to help others get to grip with financial markets, particularly his area of expertise - forex!

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