The Magazine for Asian Investors
Oil prices are wait-and-see ahead of the Organization of Petroleum Exporting Countries (OPEC) and Alliance (OPEC+) meeting.
Brent crude futures fall slightly to $71.43/barrel or 0.36%.
WTI crude oil futures also fall slightly by 0.04% or $68.42/barrel.
U.S. oil and natural gas production in the Gulf of Mexico are more than 94% disrupted as Hurricane Ida swept across the Gulf late last week. The damage to U.S. oil refineries and the loss of crude oil is a factor that is pushing oil prices higher.
On Wednesday, the OEPC+ will meet to discuss the way forward for crude oil production. Several sources already report that OPEC+ will maintain its line. Already in July, OPEC+ had decided to increase production by 400,000 bpd. Given the bleak outlook until the end of the year, it is unlikely that OPEC+ will change its comfortable position and increase production.
Crude oil demand is expected to weaken by the end of 2021. This makes it more likely that the alliance will not adjust production levels despite pressure from the U.S. to increase supply.
Rising COVID-19 infection numbers continue to cause concern. If the delta variant continues to spread and is likely to bring a fourth wave, this could have a negative impact on oil demand.
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Wednesday 1. Sep-2021