- Oil futures rose Tuesday morning as demand keeps rising and OPEC+ members remain in a standoff
- The market is poised to significantly tighten if OPEC+ doesn’t resolve a dispute to lift oil output, the EIA said
- Early estimates from analysts show another sizable withdrawal is crude oil stocks in the U.S. – government data due Wednesday
- The International Energy Agency (IEA) warned that global oil markets are set to “tighten significantly” unless the OPEC+ alliance resolves its impasse and agrees to increase production (Bloomberg)
- In the backdrop of rapidly recovering demand, OPEC+ is set to keep output levels unchanged next month due to a Saudi-UAE dispute on quotas
- The IEA, in its monthly report, said OPEC+’s deadlock threatens to inflict a “deepening supply deficit,” with “the potential for high fuel prices to stoke inflation and damage a fragile economic recovery,”
- AEGIS notes that even if an agreement is reached soon, the cartel will likely miss an August production increase
- With August sales fixed and most Gulf countries prepping for an Islamic holiday, the discussion will have shifted to September supply volumes by the time the coalition reconvene, delegates said and reported by Bloomberg