OPEC + is close to reaching an agreement: increase production by 500000 barrels in January next year, and adjust it month by month

category:Finance
 OPEC + is close to reaching an agreement: increase production by 500000 barrels in January next year, and adjust it month by month


(source: OPEC website)

According to the plan, OPEC countries and Russia will cut production targets from the current 7.7 million barrels per day to 7.2 million barrels per day from January next year, about 7% of global demand. Stimulated by the positive stimulus of finally reached an agreement, up to the time of publication, the futures prices of both US oil and cloth oil rose by more than 1%, close to the peak after the epidemic, and the continued weakening of the US dollar has also formed additional support for oil prices.

(source: tradingview) although it was generally expected that the current production reduction quota would be extended to the end of the first quarter of next year, the vaccine market in November has led more and more countries to question Saudi Arabias proposed production reduction plan. Delegates revealed that the United Arab Emirates, Russia, Iraq and Nigeria all expressed their willingness to increase production in 2021 at the meeting this week. From the most pessimistic point of view, a meeting like this weeks stalemate is likely to occur once a month in the future. However, for OPEC +, in addition to the game within the organization, it is still necessary to prevent the rapid rise of oil price. According to market consensus, once crude oil price exceeds $50 / barrel, shale oil production capacity in the United States will be increased. Source of this article: Wang Xiaowu, editor in charge of CFA_ NF

(bu you daily chart trend, source: tradingview)

Although it is generally expected that the current production reduction quota will be extended to the end of the first quarter of next year, the vaccine market in November has made more and more countries begin to question the production reduction plan proposed by Saudi Arabia. Delegates revealed that the United Arab Emirates, Russia, Iraq and Nigeria all expressed their willingness to increase production in 2021 at the meeting this week.

From the most pessimistic point of view, a meeting like this weeks stalemate is likely to occur once a month in the future. However, for OPEC +, in addition to the game within the organization, it is still necessary to prevent the rapid rise of oil price. According to market consensus, once crude oil price exceeds $50 / barrel, shale oil production capacity in the United States will be increased.