*Brent up further as Saudi Arabia, Russia likely to extend 9.7million b/d quota
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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