OPEC+ Uncertainty, Virus Variant Worries Linger in Oil Market, IEA Says

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If OPEC and its allies can't reach an agreement on oil production, a deepening supply deficit may loom, the International Energy Agency says

At the same time, the memory of last year’s oil price war—which contributed to the collapse of the crude market—remains fresh for investors, and “the possibility of a market share battle, even if remote, is hanging over markets,” the IEA’s report added.

The price of oil has remained volatile in the days since OPEC was last week unable to break a deadlock over oil production, with differences between Saudi Arabia and the United Arab Emirates—normally staunch allies—Crude prices edged higher early Tuesday, with Brent crude oil, the global benchmark, up 0.4% at $75.49 a barrel. West Texas Intermediate futures, a key U.S. gauge, rose 0.4% to $74.41 a barrel.

 

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Unlikely! The agreement is to artificially reduce production. If no agreement then more production. As the price has risen over the last 12 months more and more production capacity becomes profitable and is coming on stream. Return to normal demand is some way off globally!

Wow!

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