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Oil market can count on steady prices – WoodMac vice-president

Oil&Gas Materials 14 September 2021 08:00 (UTC +04:00)
Oil market can count on steady prices – WoodMac vice-president

BAKU, Azerbaijan, Sept. 14

By Leman Zeynalova - Trend:

The oil market can count on additional supply to meet demand and steady prices unless a sudden change in demand or an outage occurs, Ann-Louise Hittle, Vice President, Oils Research at Wood Mackenzie, a global energy, chemicals, renewables, metals and mining research and consultancy group based in the UK told Trend.

"We see the September meeting as an indicator the OPEC+ compromise of 18 July is succeeding with support continuing for the carefully crafted July agreement. That means the market can count on additional supply to meet demand and steady prices unless a sudden change in demand or an outage occurs. In the case, prices could drop or increase. However, OPEC+ plans to meet each month to adjust output as needed. If demand falls or growth slows sharply, then OPEC+ could delay an increase at the meetings," she said.

Ann-Louise Hittle noted that the 1 September 2021 OPEC+ meeting results were not a surprise.

"The OPEC+ group had already laid out a clear plan at their 18 July meeting to increase production across the group by 400,000 b/d a month through end-September 2022. These increases each month are meant to regulate the return to the market of almost 5.7 million b/d production restraint still in place. The group said at the 18 July meeting it would gather at the start of each month to check on the market fundamentals before confirming if the next 400,000 b/d increase would go ahead. At the 1 September meeting the oil ministers quickly signed off on the 400,000 b/d rise for October 2021 and set 4 October as the next meeting date at which the ministers will discuss production for November 2021," she added.

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