Select Language

OPEC+ supply increase in line with our expectations - ING

Breaking news

OPEC+ supply increase in line with our expectations - ING

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.06.02 18:48
OPEC+ supply increase in line with our expectations - ING

update 2025.06.02 18:48

OPEC+ agreed to another large supply hike over the weekend, increasing it by 411k b/d effective July. The increase is similar to those in May and June. By the end of July, the group will have brought back more than 60% of the 2.2m b/d worth of planned supply increases, ING's commodity experts Ewa Manthey and Warren Patterson note.

Lower Oil prices continue to weigh on US drilling activity.

"The latest increase is in line with our expectations. We're also assuming that OPEC+ will continue with these large supply hikes. This would mean that the full 2.2m b/d of supply will be brought back by the end of the third quarter of this year, 12 months ahead of schedule. This is the key assumption behind our price forecast for ICE Brent to average US$59/bbl in the fourth quarter. Despite the large increase, Oil prices rallied this morning."

"Rising tensions between Russia and Ukraine added further support to the market this morning. Ukraine carried out large-scale drone attacks on several Russian airfields, which comes ahead of peace talks between Russia and Ukraine this week. In addition, some US senators are pushing for harder sanctions against Russia, with a proposal to impose 500% tariffs on imports from countries that buy Russian Oil. Republican Senator Lindsey Graham and Democratic Senator Richard Blumenthal hope to have sanctions in place by the time of the G-7 summit in mid-June. While President Trump appears to be increasingly frustrated with President Putin, he's so far been reluctant to impose additional sanctions. Actions that successfully target Russian Oil flows will change the outlook for the Oil market drastically."

"Lower Oil prices continue to weigh on US drilling activity. The latest Baker Hughes data shows that the US Oil rig count fell by 4 to 461, the fifth consecutive week of declines. Given our view for Oil prices to move lower towards the end of this year, we would expect to see additional slowing in drilling activity, calling into question forecasts for growth in US Oil supply next year. The latest positioning data shows that speculators reduced their net long in ICE Brent by 4,379 lots to 158,950 lots as of last Tuesday. It shows that speculators are quite split, with the gross long position increasing by 12,543 lots over the week and the gross short increasing by 16,922 lots."


Date

Created

 : 2025.06.02

Update

Last updated

 : 2025.06.02

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

PBOC sets USD/CNY reference rate at 7.1886 vs. 7.1869 previous

The People's Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead on Wednesday at 7.1886 as compared to the previous day's fix of 7.1869 and 7.1977 Reuters estimate.
New
update2025.06.04 10:15

NZD/USD strengthens to near 0.6000, eyes on potential US-China talks

The NZD/USD pair holds positive ground around 0.6000 during the early Asian session on Wednesday. The US Dollar (USD) weakens against the New Zealand Dollar (NZD) amid concerns over the impact of US President Donald Trump's tariffs on the US economy and global trade.
New
update2025.06.04 10:04

Iran says open to accept nuclear consortium on its soil

Iran is open to basing a nuclear deal with the United States (US) around the idea of a regional uranium enrichment consortium based in Iran, Axios reported on Wednesday, citing a senior Iranian official.
New
update2025.06.04 09:19

WTI extends upside above $62.50 geopolitical risks, supply fears

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $62.80 during the Asian trading hours on Tuesday. The WTI price extends the rally to two-week highs amid persistent geopolitical tensions and a weaker US Dollar (USD).
New
update2025.06.04 09:02

GBP/USD settles into a holding pattern just above 1.3500

GBP/USD trimmed bullish momentum on Tuesday, settling into slim chart churn just north of 1.3500.
New
update2025.06.04 08:54

USD/CAD remains on the defensive near 1.3700 ahead of BoC rate decision

The USD/CAD pair remains on the defensive around 1.3715 during the early Asian session on Wednesday. The Canadian Dollar (CAD) edges higher against the Greenback as crude oil prices rise.
New
update2025.06.04 08:08

Australia's Gross Domestic Product expected to show modest Q1 growth

The Australian Gross Domestic Product (GDP) will be released on Wednesday, with mixed expectations ahead of the announcement. The first quarter (Q1) figures from the Australian Bureau of Statistics (ABS) are expected to show that the economy made modest progress in the three months to March 2025.
New
update2025.06.04 07:45

AUD/JPY Price Forecast: Edges higher with eyes set on 94.00 as bullish harami emerges

The AUD/JPY opens Wednesday's Asian session with a positive mood, posting gains of over 0.08% at the time of writing. The cross-pair appears poised to extend the ongoing leg up, testing the May 29 daily high of 93.86.
New
update2025.06.04 07:21

USD/CHF Price Forecast: Rebounds from 6-week low, climbs past 0.8200

USD/CHF bounces off six-week lows of 0.8155 and surges past the 0.8200 figure as the Greenback is boosted by solid US jobs data, which is pushing the pair above its opening price by 0.26%.
New
update2025.06.04 05:58

Silver Price Forecast: XAG/USD pulls back from yearly highs stays above $34.50

Silver price trimmed some of its Monday's 5% gains, edging down 0.52% on Tuesday, with the grey metal trading near the $34.50 area, stuck to the highs of the current week.
New
update2025.06.04 05:21

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel