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By Warren Patterson, Ewa Manthey
Energy - OPEC+ goes with a larger supply hike
ICE Brent is trading lower this morning after OPEC+ agreed on a larger-than-expected supply hike of 548k b/d for August, more than the 411k b/d
Commodities: OPEC+ Surprises With A Larger Supply Increase
Summary
- ICE Brent is trading lower this morning after OPEC+ agreed on a larger-than-expected supply hike of 548k b/d for August, more than the 411k b/d increase seen in the preceding months.
- If OPEC+ were to go with a similar increase for September, it would mean that the group has not only fully restored the intended 2.2m b/d of supply but also added close to 300k b/d of additional supply.
- Larger supply hikes increase the scale of the surplus in the oil market later in the year. This supports the view that there’s further downside for oil prices.
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