1. Upcoming OPEC+ Meeting Might be An Exercise in “Ouching”
- Saudi Arabia’s Energy Minister Abdulaziz bin Salman has warned oil market speculators that hey will be “ouching” very soon if they continue shorting oil futures.
- Trading positions of the managed money segment, comprising hedge funds and other non-commercial participants, have slumped to the lowest net length since at least 2011.
- Whilst refined products, especially gasoline in the US, have seen some lengthening recently, net sales of crude oil have continued last week, with CFTC data indicating a shortening of another 18 million barrels worth of contracts.
- The ongoing debt ceiling talks have added to the market’s frustration so the sentiment going into OPEC+’s June 4 meeting is as bearish as it was before the April summit.
2. Canada’s Oil Sands to Produce Higher for Longer
- S&P Global Platts has upgraded its outlook on Canadian oil sands production, arguing that the ongoing project optimizations will bring total production to 3.7 million b/d by 2030, 0.5 million b/d higher than today.
- Most of the incremental production would come from step-out optimization projects that target prospective areas adjacent to existing operational acreage and improved utilization of solvent-assisted extraction.
- Considering the above-average lifespan of Canada’s oil sands, the country’s oil production…