OPEC+ may announce larger oil production cuts at an upcoming meeting. This was reported by Bloomberg.
Pierre Andurand, well-known oil trader and head of hedge fund Andurand Capital Management (ACM), told the publication that this was necessary to compensate for the unexpected increase in supply from the United States and other countries. The expert believes that Saudi Arabia is interested in increasing prices and will look for OPEC+ partners to participate in the final cut. Otherwise, Riyadh could lift its unilateral restrictions of 1 million barrels per day.
The trader said he was surprised that US production increased by about 700-800 thousand barrels per day compared to forecasts. Additionally, supplies from Iran have been restored and Russia is ignoring its obligations under the OPEC+ agreement.
As a result, Andurand believes that OPEC+ may announce new measures at the next meeting. Otherwise, Saudi Arabia threatens to lift restrictions and put pressure on oil prices.
The other day at the US State Department expressed Confidence that Arab countries will not use oil as a weapon.
Formerly Goldman Sachs named A further reduction in OPEC+ oil production is likely.