The eyes are awaiting the “OPEC +” meeting to know the directions of the market

The delegates of the members of the OPEC +oil coalition will meet today, Wednesday, to review the production shares for this year and the next year, amid anticipation of dealers in the market to know their directions.

Although market watchers do not expect any change in the coalition policy, it may be decided to raise production for July on Saturday when the eight main members of the coalition hold talks and decide whether they will strengthen production again in July, according to Reuters quoted unnamed sources.

Several delegates expected that the oil alliance will keep its long -term goals for the current and next two years, which support the current restrictions on supplies, according to Bloomberg.

By 09:00 GMT, the global crude futures for Brent’s Mix delivered July 0.12% to $ 64.17 a barrel; West Texas Intermediate crude futures increased 0.16%, registering $ 61 a barrel.

Oil prices remain under pressure

While oil prices rose in global markets today after the United States prevented the Chevron company from exporting crude from Venezuela according to a new statement of assets, as investors were in account of the risk of supplies, the prices are still under pressure from the possibilities of increasing production.

If “OPEC+” decides to move forward in its endeavors to restore the market share, the possibility of adjusting the basic productive shares of discussion may be presented during today’s meeting.

However, a number of delegates confirmed that they have not yet monitored references to the existence of modifications of this type to the current agenda, according to Bloomberg.

The “OPEC+” sequence shows a shift in the decision -making structure within the alliance during the past two years, as the importance of the productive shares prescribed for all 22 member states, and the actual amendments to the supply are managed by a microcosm of 8 countries led by Saudi and Russia.

These countries surprised the markets on April 3 by announcing an increase in market expectations in oil production, which amounted to three times the previously prescribed quantity, which contributed to the decline in prices.

Increased production will exacerbate the exhibit glow

OPEC+approval will lead another significant increase in the month of July at its meeting on May 31 to deepen the exhibit and reference to another step towards a price war, according to Will Harris, an analyst at Bloomberg.

Although the market is preparing for an increase of 411 thousand barrels per day, until the sudden stop is likely to provide a brief relief for prices with the increasing supply from outside the “OPEC+” and the movements of US President Donald Trump’s commercial administration that harms demand.

“OPEC+” is likely to discuss issues related to the foundation lines of its production for the year 2027 at its meeting today, according to Reuters quoted by representatives, while the separate talks scheduled for Saturday may agree to increase production in July.

It is also likely that the coalition from the headquarters of the OPEC will request a mechanism to help in setting the basic line assessment of 2027, one of the delegates said.

The eight “OPEC+” members meet on Saturday, and they are gradually raising production; They may agree to increase production for July by 411 thousand barrels per day, the same as what was done for the month of May and June.

The members of “OPEC+” have agreed on 3 layers of reducing production since 2022, two of whom are two lashes until the end of next year, while one of these layers is being canceled by the eight members.

In theory, the 2027 basic lines can appear in the production policy when all currently in place.