The Joint Ministerial Monitoring Committee (JMMC) of OPEC+ held its regular bimonthly meeting virtually yesterday, Commerzbank’s commodity analyst Carsten Fritsch notes.
Market participants expect production volumes to be increased
“The only noteworthy point in the press release is that great importance is attached to compliance with the OPEC+ production agreement and that countries that previously produced above the agreed levels should submit plans for compensatory cuts by August 18. However, there was no production recommendation for OPEC+.”
“Since the production decision lies with the eight OPEC+ countries with voluntary production cuts, the JMMC has lost importance. This could change again at the next JMMC meeting on October 1, as the production increases by the eight countries are expected to be completed by then. The next decision by these countries is due this coming weekend.”
“Market participants and analysts surveyed by Bloomberg unanimously expect production volumes to be increased again by almost 550,000 barrels per day in September. This would mean that the voluntary production cuts would be completely reversed a year earlier than originally planned.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
