The Opec+ alliance agreed to bring production targets back down to August levels for October during a swift 5 September meeting. This equates to a nominal 100,000 b/d headline cut, though in reality with so many producers well below their allocations the effect will be much smaller. Dynamics in volatile producers such as Libya will be far more consequential in terms of actual changes to crude supply.
The decision is designed to demonstrate that Opec+ is prepared to return to cuts in a bid to shore up the market amid growing demand concerns. Opec+ sources were quick to describe the cut as “symbolic.” (CONTINUED - 1240 WORDS)