Opec+ finally acceded to the international clamor for more oil with a 2 June agreement to accelerate the tapering of production cuts, and bring forward the end of cuts by one month to August. Still, the decision to raise the nominal pace of monthly production increases by 216,000 b/d to 648,000 b/d for July and August will barely move the needle when it comes to global supply. Rather, it represents the first indication that Opec+ is willing to accede to consumers’ supply concerns following the outbreak of the Ukraine conflict.

A post-meeting Opec communique made no mention of Russia supply concerns, merely stating that “the Meeting noted the most recent reopening from lockdowns in major global economic centers. It further noted that global refinery intake is expected to increase after seasonal maintenance.” (CONTINUED - 1145 WORDS)