Opec+ has made it to the end of a long road. During a swift 30 June meeting it ratified an agreement to fully unwind in August the historic 9.7mn b/d cuts agreed on in April 2020 at the height of the Covid-19 market shock (MEES, 17 April 2020). MEES understands that ministers did not discuss the potential for any further production increases from September, but Opec+ members will begin assessing whether such a move is necessary, and even feasible, ahead of the next ministerial meeting on 3 August.
The industry landscape has transformed dramatically since April 2020. Just days before the Opec+ cuts took effect from 1 May 2020, WTI dropped into negative pricing, while now with Brent firmly in a $100-120/B range the focus is on low spare-capacity and the impact of restrictions on Russian output. (CONTINUED - 1114 WORDS)