Oil: Eyes on OPEC+ decision - TDS

TD Securities analysts point out that OPEC agreed to extend the supply curtailment agreement by 9 months and broader OPEC+ group will confirm the decision today as hinted by the 'real OPEC meeting' between President Putin and crown prince MBS at the G20.

Key Quotes

“For oil markets, participants will be closely watching for compliance signals. Saudi Arabia, which has been cutting production deeply beyond its allowed output budget, has signaled that it will continue to pump less than its allowance in July.”

“This should help the supply-side pump out a positive narrative, which we expect will offset the growing fears of waning demand. We expect the OPEC+ group of producer's promise to stay the course with their production curtailment agreement until the end of the year, rising Middle East geopolitical risks and sharp reductions in Iranian export flows, along with lower US inventories, will all contribute to upside potential for crude.”