YGRN - Oil Prices Fall Out Of The Saudi Comfort Band We See OPEC+ Delaying Production Hikes
- The Saudi oil price comfort band is between $68 and $75 Brent.
- With Brent now below this band, the Saudis will likely push for a delay in production increase.
- Goldman estimates Delta Variant to impact global oil demand by ~1 million b/d. If so, it makes sense for OPEC+ to delay production increase for 2-3 month.
- While it logically makes sense, OPEC+ may not always do the most logical thing. One thing interesting, however, is that the current baseline agreement does give OPEC+ flexibility in the way it wants to increase production.
For further details see:
Oil Prices Fall Out Of The Saudi Comfort Band, We See OPEC+ Delaying Production Hikes