Is OPEC+ Preparing a New Shock for the Oil Market?
OPEC+ is reportedly considering a further oil production increase at its meeting next Sunday. If implemented, this move would accelerate the reopening of production cuts by 1.65 million barrels per day, equivalent to 1.6% of global demand, a year earlier than originally scheduled. The eight member countries will meet online to determine production quotas for October.
However, no final decision has been made. Some analysts even predict that OPEC+ may choose to delay the production increase until October. This uncertainty has market participants closely awaiting the outcome of the meeting, especially since OPEC and Saudi authorities have not yet officially commented on the plan.
Meanwhile, oil prices have remained stable after previously reaching their highest level in a month. Investors are weighing geopolitical risks, including the possibility of additional US sanctions on Russia and Ukraine's attack on Moscow's energy infrastructure. Meanwhile, tensions in Venezuela are also in the spotlight after the presence of US warships sparked accusations from President Nicolás Maduro that Washington is trying to seize his country's oil.
Brent crude for November delivery fell 0.6% to $68.74 per barrel in the London session, while WTI for October weakened to $65.20 per barrel. However, analysts believe that a potential surprise from OPEC+ this weekend could still shake the direction of the global oil market. (ayu)
Source: Newsmaker.id
