WTI crude falls through $67 despite talk of OPEC+ pause | Forexlive

Earlier, Bloomberg was out with a report that OPEC+ was discussing a pause in further production increases after unwinding the final ‘voluntary’ cuts in September.

That’s positive in theory but largely falls in line with current expectations. It says they “will likely wait some time” before beginning to wind down the 1.66 mbpd still offline from the full group, though many in the market don’t believe there is that much spare capacity.

At the moment, the crude market is cushioned by seasonal summer strength but the real test for prices will come in Q4 when that disappears but the OPEC+ barrels remain. Even with today’s $1.40 decline, oil trading just below $67 is higher than where most thought it would be given the scale and speed of the barrels that have returned.

Going foward though, eyes will be on the global economy — particularly China and the USA — for signs of demand.

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