News Wire — The OPEC+ alliance of major oil producers provided a bullish jolt to the global oil market in April when it decided to proceed with a gradual increase in crude supply – and cancel its regularly scheduled meeting for that month. The group is set to meet again this week, and one informed market-watcher shares with Rigzone his thoughts on what could – or could not – unfold.
Jon Donnel, Managing Director – Energy, B. Riley Advisory Services: Information coming from the OPEC+ meeting starting June 1 will influence oil prices this week. No major changes are expected from the prior plans for the group to add 840,000 barrels per day (bpd) to the market in July but, as we saw last time, there is always room for surprises at these events. Russia has stated that worldwide demand currently exceeds supply by about 1 million bpd, potentially setting the stage for incremental production, but those barrels could be produced by Iran – should an agreement be reached to lift trade sanctions.
Tom Seng, Director – School of Energy Economics, Policy and Commerce, University of Tulsa’s Collins College of Business: The market will be waiting to see how travel miles this Memorial Day Weekend, both by car and plane, stack-up vs. the pre-COVD-19 holiday weekends. Concerns over the pandemic crisis in India will continue and the status of U.S./Iran nuclear agreement talks will be closely watched. Also, the Israeli-Palestinian conflict will need to find a resolution to stem the violence in that region.
(The views and opinions expressed in this article are those of the attributed sources and do not necessarily reflect the position of Rigzone or the author.)
*Matthew V. Veazey – [email protected].