RBC on oil and OPEC+, ‘data dependent’

On the OPC+ meeting and announcement, earlier info:

• Goldman Sachs says the OPEC+ meeting outcome is bearish for oil
• More from OPEC+: Saudi energy minister says waiting for interest rates to come down
• HSBC hold their Brent oil price assumptions steady after OPEC+ meeting

In a nutshell the OPEC announcement included plans to phase out voluntary production cuts of 2.2 million barrels per day

• would begin phasing out those cuts over the course of 12 months starting in October
• more than 500,000 barrels per day would return to the market by December
• 1.8 million barrels per day would come back by June 2025

RBC is not so sure:

• “Some people read the OPEC statement, particularly the part about the adding barrels back from the voluntary cut, as bearish”

But:

• “They were pretty clear that this is going to be data dependent”
• “As we get to the end of August, if the fundamental picture looks worse than what we have now, they would pause that addition”

Oil update, hourly candles:

This article was written by Eamonn Sheridan at www.forexlive.com.