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OPEC+ Meeting Wednesday

July 14, 2020

Ahead of a July meeting tomorrow, Iraq, Nigeria and Kazakhstan are being asked to make up for shortfalls in their production cuts from previous months. Those additional cuts will be made in August to supplement a planned cut of 7.7MMBpd, which drops from current 9.6MMBpd.

 

Oil prices are in a sideways range ahead of the meeting. Given the near proximity of pricing toward the highs of the last 4 months, there is optimism that the strength in pricing can continue in the short term. R^2 still advises defensive Risk Driven hedges at this juncture to manage Low Case budget metrics, given asymmetric risk to the downside.  



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