What to watch before the next OPEC+ meeting

With the Fed’s decision to raise rates behind us, many uncertainties still threaten to keep oil prices volatile. In the current tight market, the Fed’s decision to raise rates by 75 basis points pushed WTI down, but by less than 1%. Gasoline prices continue to fall, but the risk of a slowdown in price declines on this front remains.

All eyes are on the OPEC+ meeting next week where the cartel will discuss the plan for September. While the OPEC+ deal will be officially canceled in August, the group has agreed to continue cooperation and meet to discuss the state of the oil market, which Saudi Arabia and Russia discussed just this week. last. However, there has been no public talk of resetting the production quotas. So far, 5 OPEC+ sources who have spoken to Reuters have suggested the group should keep September production targets steady, although two OPEC+ sources who have spoken to Reuters have suggested the group could consider a slight increase. That hasn’t stopped the Biden administration from proclaiming that it hopes OPEC+ will announce a raise for September.

But the biggest item on the to-watch list is that Saudi Arabia usually announces any price changes following these regular meetings. If Saudi Arabia announces a price increase, that would be a good indication that they don’t have a lot of spare oil to ship and that they plan to increase production for the month of August…

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