OPEC+, the 23 nation crude oil producing coalition led by Saudi Arabia and Russia meet today. Here is why you must watch the meeting outcome closely-:
- Crude oil prices hover around 3-year high at $75/bbl as demand continues to rise but supply constraints remain
- OPEC+ is still withholding 6 million barrels of crude per day from the market to maintain 'balance' in prices
- Market is pricing in a release of additional 500,000 barrels per day fro August by the oil producers
- Delay in Iran nuclear talks and rising demand as the pandemic ebbs is pushing prices higher
- Inventories in the OECD have been falling for 9 straight months. Even the Crude oil held in short term floating storage at lowest since Feb 2020.
- Bank of America sees a possibility of crude prices revisiting $100/bbl in the next year
- India imports 80% of oil needs and is seeing record high prices for petrol and diesel across the nation.
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