Three quarters of analysts in a survey expect OPEC+ to approve their plan to increase oil production amid rising prices during their meeting on September 1. CL1! is up +2.15%
- Analysts say global uncertainty and China’s recovery concerns have faded, which reinforces OPEC+ sticking with output hikes.
- Some OPEC+ delegates have also projected, in private, that the group will raise output as planned.
- The cartel is, per the survey, not expecting new supplies from Iran after talks with the US over sanctions stalled. Any increase in supply is expected to be absorbed by rising demand.
- The crude oil prices had stumbled early in the month due to a slow demand in China and the US caused by the effects of Covid-19.
- OPEC and its members have already resumed 45% of stalled production and are seeking to add 400,000 barrels per day each month up to the end of 2022.