OPEC JMMC meeting oil price outlook June low ahead

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Oil talking points

Oil price Since June, trading at its lowest level has slipped below the $ 40 mark, and crude oil prices may weaken in September Organization of Petroleum Exporting Countries (OPEC) Voluntary production cuts in response to COVID-19.

Fundamental forecast for oil: Berish

Oil price June low ($ 34.27) ahead of OPEC Joint Ministerial Monitoring Committee (JMMC) meeting US crude inventories on tap for July 16–17 rose unexpectedly for the first time since July, with output also recovering during the same period.

Crude oil

Oil stockpills rose 2033K in the week ending September 4, forecast for a 3000K decline, while the latest data coming out of Energy Information Energy (EIA) showed the US field Climbing from 9,700K b / d to 10,000kb / d in the week ending 28 August.

Looking ahead, US production may continue to recover after Hurricane Laura, and another surge in crude inventories could keep OPEC’s energy prices under pressure in recent times. Monthly Oil Market Report (MOMR) Shows a decrease in global demand forecast with “The downward revision is primarily to reflect weak-to-expected data in 2Q20 in some non-OECD countries, in addition to the recent adjustment of global GDP in 2020 from -3.7% in July to -4.0% in August. Consider it.”

It is to be seen whether OPEC and its partners will take additional steps to increase the price of oil?Recovery speed appeared slower than expected with increased risk of long wave of COVID-19, “But the group can only repeat “Declaration of Cooperation in Supporting Rebalancing the Global Oil Market (DoC) Ongoing Positive Contribution” In form of COVID-19 compensation mechanism ending in.

Much can be done to influence the oil price at the September JMMC meeting, and may indicate a recovery in US production as well as a decline in recovery as crude oil prices may continue to decline because Global demand remains.

— Written by David Song, Mudra Strategist

Follow me on Twitter @DavidJSong