OPEC-Approve increased production
After a short video conference on Wednesday, OPEC and its partners agreed to continue their existing strategy for modest monthly oil production growth.
After less than an hour of talks, authorities confirmed an expected increase in supply of 400,000 barrels a day in October. This is one of the shortest sessions in recent memory, in stark contrast to the deliberations observed in July. OPEC has once again demonstrated its ability to efficiently convene and carry out its mission. “Harmony is likely to be used to flexibly respond to further market upheavals next year,” he said.
The conditions seem to be beneficial to the cartel, but there are some concerns about the horizon. Even if demand recovered, the introduction of the coronavirus strain threw a wrench on the work. Markets are also concerned about whether Iran and the United States agree to ease sanctions on Islamic republican oil exports. West Texas Intermediate recovered its early losses and fell 0.4% in New York at $ 68.54 a barrel.
Fuel use proved to be elastic
OPEC and its partners, especially Russia, are in the process of reversing the mass production restrictions adopted last year. covid-19 crisis. In July, the company announced plans to phase out the rest until September 2022.
Crude oil prices have almost recovered from their mid-August lows, and supply looks pretty tight for the rest of the year. Despite the White House’s request to resume production sooner, the coalition of 23 countries saw little reason to deviate from the established schedule of gradual monthly supply increases.
There were some concerns about the plan when the oil market shook during the summer as the resurrected virus threatened demand. However, fuel consumption remains resilient and the total amount of petroleum products supplied in the United States reached a record high in late August.
For the time being, Iraq is using the OSP base to measure crude oil interest rates and prices, according to Shatari.
For the time being, Shatari added that the tool is not only sold at a low price, but also maintained as an OSP sensor. Due to market volatility and rapid volatility, we need sensors to signal OSP performance.
According to sources, SOMO crude oil grades have recently been traded at significant discounts on the spot market, especially for each OSP in Basra Heavy. According to the dealer, the September-loaded Basra Heavy Cargo was sold at a discount of about $ 2.3 / b to $ 2.5 / b from the official selling price in August.
According to sources, quick loading dates and extended loading programs have reduced demand for medium and heavy sour grades from Asian customers. SOMO reportedly placed a bid for 2 million barrels in August with Basra medium oil in July, with little interest from Asian refiners.
During the Platts Market On Close evaluation procedure, SOMO offered Basra Medium Cargo and bid at a discount. The highest bid was 15 cents / b for a grade OSP. SOMO has decided not to allow bidding.
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OPEC + continues to increase monthly oil production
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