OPEC+ SUMMARY: A small increase but still burdened by overcompliance

Analysis details (14:33)

The group agreed to hike total production by 100k BPD, split among most members (see here for the Sep vs Aug quotas), with Saudi’s share being increased by 30k BPD and the UAE’s by 7k BPD. Ahead of the meeting, sources were guiding for an increase of “under 500k BPD” to 100k BPD, thus at the lower end of guidance. The decision is likely to please the US and ease some pressure from Washington in the short term at least, with US Energy Department's Hochstein stating the US has seen a remarkable decline in oil prices and wants to see even lower prices. Additionally, Saudi Arabia hiked output by a remarkable level in July. However, the question remains over real output - with OPEC over-compliance at over 300% and non-OPEC at over 400%, according to Energy Intel. The next confab is scheduled for September 5th.

03 Aug 2022 - 14:32- EnergyResearch Sheet- Source: Newsquawk