OPEC+ to consider another output hike at Sunday meeting | investingLive

OPEC+ was supposed to be done with output hikes but this report is going against those expectations. Oil prices of course spiked to the downside but have recovered some of the losses.

Such surprises generally trigger much bigger and lasting moves, so the current price action seems to be suggesting that this isn’t a big deal for the market as the focus might still be on demand with the Fed looking to cut into a rebounding economy.

Update:

Some analysts and one OPEC+ source said that there’s also a chance that OPEC+ could pause the increases. A final decision has not been made the source said.

The Reuters report further adds that another boost to output would mean that OPEC+ would be starting to unwind a second layer of output cuts of about 1.65 million barrels per day, or 1.6% of world demand, more than a year ahead of schedule.