OPEC meets next week – response to the US reserve release watched for

The next OPEC and non-OPEC Ministerial Meeting is on 2 December 2021.

A snippet from RBC’s note on Biden’s SPR release on Tuesday:

  • Next week’s OPEC+ meeting will be crucial in determining the efficacy of Tuesday’s announcement
  • It’s most likely that OPEC+ will stick with its existing plan to proceed with output increases next week, but Saudi Arabia may push to scale back the plan

Keep an eye and ear out for expected OPEC+ responses in the days ahead. RBC saying Saudi may want to scale back the output hike would be a very aggressive response. If they do it’ll be couched in terms of expected diminished demand due to renewed COVID-19 outbreaks, and associated restrictions, especially in Europe. Still, dialling back output in the wake of the SPR release would be a huge slap in the face for the US.

The next OPEC and non-OPEC Ministerial Meeting is on 2 December 2021.

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