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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
ENERGY
OPEC+ held a 16 minute meeting today and affirmed a 400,000 b/d production hike for March. The next meeting to be held on March 2.
- The cartel has maintained consistent production hikes but failed to meet production targets to fill increased demand after the initial Covid-19 demand slump.
- There is an understanding amongst analysts that the Saudi led meetings are not addressing non-compliance with production targets. This appears to be confirmed by the short meeting time.
- Goldman Sachs said in a note after the meeting that “the combination of rising geopolitical tensions (Ukraine and Iran) and prices approaching politically sensitive levels are likely to increase volatility.”
- Another factor to consider is the nuclear deal between the US and Iran which could lead to Iranian oil hitting the international markets. This deal is not guaranteed but the Saudis are taking a cautious approach to geopolitical uncertainty in the oil market.
- Expect more pressure from Washington in the coming weeks for Riyad to fill the production shortfall.
S&P Global Platts
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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