Russian Deputy Prime Minister Alexander Novak has hinted at the possibility of the OPEC+ alliance increasing oil production in response to current market conditions. The decision on production levels is expected to be made at the upcoming meeting on June 1, where countries like Iraq and Kazakhstan, who exceeded production targets in the first quarter, plan to make necessary adjustments.
In a related development, the US Energy Information Administration has revised its world oil production forecast upwards while lowering demand expectations. Despite tensions in the Middle East, price volatility has remained relatively stable thanks to spare crude production capacity.
On the commodities market, Nymex crude for June delivery settled at $78.38 per barrel, while Brent crude closed at $83.16 per barrel. Meanwhile, the Biden administration is actively seeking bids to refill the Strategic Petroleum Reserve with up to 3.3 million barrels. Although stockpiles have increased in the past six months, they continue to hover near all-time lows.
These developments reflect the delicate balance between supply and demand in the global oil market, with key players like Russia and the US responding to changing conditions. Investors will be closely monitoring the OPEC+ meeting on June 1 for clues on future production levels and their potential impact on prices. Stay tuned for more updates on this evolving story.
