- OPEC+ to discuss maintaining oil output at current levels for September during its meeting next week (Reuters)
- Uncertainty exists regarding the extent of OPEC+'s output increase as some sources say that a minor hike for September will be discussed, while other sources say that output will likely remain unchanged
- Several OPEC+ leaders have stated that increasing supply further is not necessary and that the market instead struggles with a lack of refining capacity
- Meanwhile, Russia and Saudi Arabia reaffirmed their commitment to the OPEC+ agreement and a stable oil market
- The two nations, which lead the oil producers' alliance, "are firmly committed to the goal of the OPEC+ agreement on preserving market stability and restoring the balance of supply and demand," according to a statement posted on the Russian government website after the meeting in Riyadh
- Citigroup says that the oil market may be beginning to turn bearish (BBG)
- Low oil inventories, high prices, and volatility may be starting to inflect to a more bearish path by the year-end as the world deals with the effects of the Russia-Ukraine conflict, according to a note from Citigroup
- Signs of moderating oil markets are showing up in prices and inventory indicators, said Citi's analysts
- Additionally, they added that while there are bearish concerns like the chance of a recession, there are bullish variables like Russia, Kazakhstan, Iran, Iraq, Libya, and Nigeria, as well as the potential for hurricanes
- The bank forecasts oil inventory builds of 1.5-2.0 MMBbl/d until year-end in its base case scenario as Europe gradually phases out oil imports from Russia and flows redirect to Asia