From Platts via Hellenic Shipping News, September 11:
Recent findings from the Platts OPEC+ survey highlight continued overproduction against a backdrop of falling crude prices. Simultaneously, the US hurricane warnings have paused the price decline, while Brazil faces increasing gasoline import gaps and competition challenges in its corn exports to China.
1. OPEC+ continues to produce above production targets
What’s happening? OPEC+ countries with production quotas again missed their targets in August, as crude prices continue to fall, the Platts OPEC+ survey from S&P Global Commodity Insights showed. Platts assessed Dated Brent at a 17-month low of $72.125/b on Sept. 9. In response to low prices OPEC+ has already delayed by two months its plans to bring some barrels back to market in the fourth quarter of 2024. Market conditions are putting pressure on overproducers, including Iraq. The country continues to produce well above quota, despite submitting plans to compensate to OPEC. Some of this overproduction was counterbalanced by outages in Libya and maintenance in Kazakhstan in August.
What’s next? Pressure on overproducers is likely to continue in the next few months, depending on price dynamics and overall compliance. The Joint Ministerial Monitoring Committee which oversees the agreement is next due to meet Oct. 2. A full OPEC+ ministerial meeting is scheduled for Dec. 1 in Vienna. The group can call extraordinary meetings if it considers market conditions that require policy discussions or changes.
2. Crude prices halt major sell-off amid US hurricane fears...
....MUCH MORE
