Cartel and its allies stick to plan to gradually lift production as demand improves.
Will oil prices breakthrough $70? In its latest forecast, Stratas Advisors notes the price movement aligned with expectations that oil prices would move upward with support from the strengthening economy and rebounding demand.
Oil prices rose on June 1, with Brent topping $70, as optimism grew over the fuel demand outlook during the summer driving season of the United States, the world's top oil consumer.
OPEC+ is likely to stick to the existing pace of gradually easing oil supply curbs at a meeting on June 1, OPEC sources said, as producers balance expectations of a recovery in demand against a possible increase in Iranian supply.
OPEC+ sources said there were no talks on amending oil output-cut levels for July, while two more said the producers should stick to their existing series of gradual output increases.
Will oil prices rebound? In its latest forecast, Stratas Advisors notes significant consequences from last week’s bombshell IEA report on oil markets.
The research division at OPEC, whose 13 members sit on 80% of the world’s crude oil reserves, produced an internal briefing document on the IEA’s report, a copy of which was seen by Reuters.
Despite stark warnings made earlier this week by the IEA, analysts with consultancy Wood Mackenzie said even a rapidly transitioning world needs oil and gas supply for decades to come.
The latest gain to $70 brings Brent’s rally this year to 35%, supported by supply cuts by OPEC and allies. This could lead to a further advance, some analysts said.