RBC Flags Drawn Out OPEC+ Highlights

RBC analysts highlight several noteworthy aspects of the drawn-out OPEC+ meeting that concluded Thursday.

• The UAE is likely to be unhappy with its inclusion in voluntary cuts after forcefully pushing for additional increases in June according to RBC.
• The cuts will be returned “gradually subject to market conditions” according to OPEC. RBC said “We see this added timing language as an attempt to squash speculation that they will flood the market with those barrels at some point in the near future.”
• RBC views Saudi as the “most material” to abiding by cuts while there is market scepticism around group efforts to comply.
• RBC also highlighted an Angolan “cliffhanger” after the African nation said it would not abide by its new quota, though the extra volumes will likely prove small.
• Of note is Brazil’s inclusion in OPEC+, it is “ viewed as one of the most significant sources of non-OPEC supply growth over the medium-term.” RBC said.