• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 2 hours Oil prices going Up? NO!
  • 1 day Could Venezuela become a net oil importer?
  • 6 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 2 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 5 mins Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 3 hours Could oil demand collapse rapidly? Yup, sure could.
  • 1 day Gazprom Exports to EU Hit Record
  • 28 mins Oil prices going down
  • 1 day EU Leaders Set To Prolong Russia Sanctions Again
  • 1 day Why is permian oil "locked in" when refineries abound?
  • 1 day Oil Buyers Club
  • 2 days Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 40 mins Saudi Arabia turns to solar
  • 1 day EVs Could Help Coal Demand
  • 2 days China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 18 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
Alt Text

240,000 Bpd Offline Following Clashes In Libya

Continuing clashes between the Libyan…

Alt Text

OPEC Confident Global Oil Demand Will Stay Strong

The OPEC technical panel has…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Trending Discussions

OPEC Unlikely To Open The Oil Taps In June

OPEC

OPEC probably won’t decide in June to bring back more oil supply, because the cartel and its allies will be watching the ongoing geopolitical events that could impact broader global growth, David Lennox, resources analyst at Fat Prophets, told CNBC on Tuesday.

Reports that Russia and Saudi Arabia are considering increasing oil production to ‘ease supply concerns and market anxiety’ sent oil prices plummeting last week, ending Monday at their lowest since May 8.

Talk of OPEC possibly discussing bringing back some production as soon as the June meeting in Vienna has only grown in the past few days.

“They probably won’t do anything in June, they’ll just stay pat at this point of time, because there are a lot of other geopolitical events going on around the globe that could have an impact on broader global growth,” Lennox told CNBC.

They will probably “sit pretty much pat”, but they will continue with the rhetoric “we are watching very closely” the market and the oil price, the analyst noted, referring to OPEC.

If OPEC, however, sees Brent Crude persistently getting higher toward the $80 a barrel region, the cartel perhaps would take some action to bring more supply, but this won’t happen in June—it would take place in one of the following meetings, Lennox told CNBC. Related: There’s No Getting Around Iranian Sanctions

At 11:40 a.m. EDT on Tuesday, Brent Crude was down 0.13 percent at $75.22, while WTI Crude was down 1.93 percent at $66.57.

Fat Prophets are keeping their year-end target on Brent at $74 to $84, because a really strong driving season in the U.S. could perhaps make up for some of the possible slack on the supply side, Lennox said.

The market is currently focused on the supply side, but demand factors with the summer coming in the northern hemisphere will perhaps help strengthen oil prices, according to the analyst.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News