Opec+ adopted a notably cautious outlook for the global oil market following the 19 August meeting of the Joint Ministerial Monitoring Committee (JMMC). The post-meeting communique noted that “there are some signs of gradually improving market conditions” but said that “the pace of recovery appeared to be slower than anticipated with growing risks of a prolonged wave of Covid-19.”

It should be stressed that demand is continuing to recover and that bloated inventories are now being de-stocked; rather the issue is that the drawdown is slower than Opec+ had initially hoped for. (CONTINUED - 1123 WORDS)