Choppy supply news: Production increase postponed for the time being – Commerzbank
Supply news made the headlines this week. Libya's production losses initially grew from day to day, peaking at 700 thousand barrels per day.
OPEC+ continues its efforts to stabilize prices
“In the second half of the week, after an agreement between the conflicting parties in the east and west of the country became apparent, the first oil producers reported an increase in production. In addition, there were further survey-based estimates for OPEC production in August.”
“According to Bloomberg, this was only 70 thousand barrels per day lower than in the previous month: a drop of 150 thousand barrels per day was recorded for Libya (Reuters had reported a drop of 220 thousand barrels per day at the start of the week), but this was partially compensated for by an increase in Nigeria and Kuwait. Iraq's daily production remained well above target at 4.3 million barrels.”
“Last but not least, the OPEC delegates kept the market in suspense: the speculation as to whether OPEC+ would now withdraw the voluntary production cuts from October or extend the curbs again after all - and if so, until when - lasted longer than expected. The final agreement on a postponement of two months has so far only helped the oil price to a limited extent - after all, ‘postponed is not cancelled’, but it shows that OPEC+ is continuing its efforts to stabilize prices.”
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FXStreet Insights Team
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