Another moderate increase in OPEC+ production likely – Commerzbank

The eight OPEC+ countries with voluntary production cuts are likely to agree on a further moderate increase in production in December at their virtual meeting next Sunday, Commerzbank's commodity analyst Carsten Fritsch notes.

OPEC+ likely to approve moderate December output increase

"This was reported by Reuters, citing four sources familiar with the matter. According to two of the sources, an increase of 137,000 barrels per day could be decided, as was the case for October and November, while the other two sources did not specify a concrete amount."

"A fifth source cited by Reuters even advocated a pause due to seasonally weaker demand. A moderate expansion in production should already be largely priced in and therefore should not weigh on the Oil price."

"The price could even benefit, as some market participants may have expected a larger production increase in view of the impending loss of Russian Oil supplies. Last week, Kuwait's Oil minister stated that OPEC was prepared to offset any shortages by reversing production cuts."