Oil Market Weekly Briefing As At 5th June 2020

Petroligica’s free weekly round-up of the latest news in the oil market is as shown below:

Brent has pushed up a little further this week, currently above $41/bbl as OPEC+ are set to meet tomorrow
The most likely outcome is a 1 month extension to the 9.7 million b/d quota level
Russia and Saudi Arabia have been complaining about the compliance of others, especially Iraq and Nigeria, and may demand missed targets are made up for later
However, this demand is unlikely to be met in practice by these nations, and has little broader market significance
The Russian energy ministry says the country was 96% compliant in May, while survey data see Saudi Arabia at 92%-100%, Iraq 43%-49% and Nigeria 18%-50%
Qatar Petroleum continues investing, including a large expansion of its LNG fleet and farm-ins offshore Mexico and Cote d’Ivoire
Some majors are withdrawing suspensions of activities, preferring to pay to retain rigs even if they are doing no work, in expectation of a restart soon.

SOURCE: petrologica.com

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