BAKU, Azerbaijan, Aug.9. The US JP Morgan Bank sees the 100 kbd increase in supply from OPEC+ as largely symbolic, with the muted increase reflecting OPEC’s defensive stance, protecting the downside in prices, Trend reports citing the Bank.
JP Morgan says in its latest report that oil prices are down 20 percent off the March, reflecting the repricing of the worst-case scenarios for Russian export volumes rather than the risk of full-on recession.
“We see global oil stabilizing in the low-100s in H2 2022, as demand dips during slowdowns have historically been short-lived and in this case is cushioned by supply constraints. In Base Metals, we see the recent relief rally will be short-lived given worsening demand and risks of oversupply. In US natural gas, we see asymmetric upside risk for the rest of the summer until demand destruction manifests. Overall, the global commodity inventory crunch has accelerated even as BCOM has slumped off highs, at close to pre-conflict levels,” reads the report.
The 31st OPEC and non-OPEC Ministerial Meeting decided to adjust upward the production level for OPEC+ by 0.1 mb/d for the month of September 2022.
This adjustment does not affect the baselines decided on the Meeting on 18 July 2021.
The meeting participants reaffirmed the decision of the 10th OPEC and non-OPEC Ministerial Meeting on 12 April 2020 and further endorsed in subsequent meetings including the 19th OPEC and non-OPEC Ministerial Meeting on the 18 July 2021.
They reiterated the critical importance of adhering to full conformity and to the compensation mechanism. Compensation plans should be submitted in accordance with the statement of the 15th OPEC and non-OPEC Ministerial Meeting.
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