In a world with too much oil, OPEC+ sweats its next move
For many in the oil market, it’s the wrong move. Increasingly, some inside the OPEC+ coalition are also wondering if the group should reconsider.
“We do not need the extra oil,” said Marco Dunand, co-founder of Mercuria Energy Group, one of the world’s largest commodity trading houses.
Saudi Arabian Energy Minister Prince Abdulaziz bin Salman and his Russian counterpart Alexander Novak face a difficult task. With too much oil around, some traders believe that OPEC may opt to delay, or spread the output hike over a number of months, trying to fine-tune the increase with seasonal consumption. “I don’t think the market sees it happening in one fell swoop,” said Mike Muller, the head of Asia at top oil trading house Vitol Group.