OPEC+ To Boost Production Target

Saudi Arabia and the UAE to raise their production by 100,000 bpd in September

The OPEC+ group gave the go-ahead to lift their oil production targets for September by 100,000 bpd as recommended by the Joint Ministerial Monitoring Committee (JMMC) which met earlier wednesday, Amena Bakr, Chief Opec Correspondent & Deputy Bureau Chief at Energy Intelligence, reported just as the ministerial meeting of OPEC+ began on Wednesday.

OPEC+ meeting is the first meeting since the group decided to roll back by the end of August all the cuts from May 2020, when the current agreement started. Analysts had expected the alliance to endorse either flat targets for September compared to August, or a slight increase.

Ahead of the meeting on Wednesday, the U.S. Department of the State approved on Tuesday a possible Foreign Military Sale to Saudi Arabia—OPEC’s top producer—of PATRIOT MIM-104E Guidance Enhanced Missile-Tactical Ballistic Missiles (GEM-T) and related equipment for an estimated cost of $3.05 billion. The State Department also cleared a possible Foreign Military Sale to the United Arab Emirates (UAE) for an estimated cost of $2.245 billion.
Saudi Arabia and the UAE are believed to be the only two producers in OPEC+ and in the world currently holding enough spare capacity to raise their oil production. A 100,000 bpd increase for the entire group will likely mean less than a 30,000 bpd increase for Saudi Arabia, and a less than 10,000 bpd increase for the UAE.

https://oilprice.com/

World shares rise, oil falls 13% on diplomacy, OPEC nation’s pledge

Moscow accused the United States of declaring an economic war on Russia

Global stock markets rallied in Europe and North America on Wednesday after three straight days of selling, and oil prices retreated from the peaks scaled over the last week after the United Arab Emirates pledged to boost its oil supply.

Moscow accused the United States on Wednesday of declaring an economic war on Russia, and said it was considering a response to the U.S. ban on Russian oil and energy imports. Russia’s economy faces the gravest crisis since the 1991 fall of the Soviet Union after Western nations imposed sanctions on Russian companies, banks, individuals and its central banking system, following its Feb. 24 invasion of Ukraine.

But there were signs that the conflict could cool on Wednesday, as Russian Foreign Minister Sergei Lavrov arrived in Turkey for more diplomatic talks with his Ukrainian counterpart Dmytro Kuleba. The MSCI world equity index, which tracks shares in 50 countries, was up 2.91% on the day at 3:30 p.m. EST (2030 GMT).

https://finance.yahoo.com/

Oil Slips

Prospect Of Rising OPEC+ Supply

Oil prices dropped early on Thursday as the market assesses the prospect of higher crude supply from the OPEC+ group after a reported compromise between key OPEC members Saudi Arabia and the United Arab Emirates (UAE). As of 11:21 a.m. EDT on Thursday, WTI Crude prices were down by 0.53 percent at $72.78 and Brent Crude was falling by 0.56 percent at $74.37.

Oil prices extended losses from Wednesday, when the market fell sharply after reports emerged that Saudi Arabia and the UAE had resolved their nearly two-week-long standoff over baseline production levels that was blocking a unanimous OPEC+ deal on oil supply. Under the compromise, the UAE will see its baseline production level lifted to 3.65 million barrels per day (bpd) after the current pact expires in April 2022, according to a Reuters source. The current baseline for the UAE is around 3.17 million bpd.

https://oilprice.com/