Oil: Noise around OPEC/non-OPEC meeting on output compliance - ING

The OPEC/non-OPEC meeting (7-8 Aug) is expected to address the compliance (or lack of) by members with the current supply cut accord, points out Viraj Patel, Research Analyst at ING.

Key Quotes

“This comes after the latest IEA report warned that higher output in June by OPEC countries bound to the production cuts had lowered compliance to 78%, while non-OPEC output cut compliance stood at 82%. Noise around the meeting will occupy the attention of petro FX, but the big picture story remains the same: oil prices stuck in the $45-$55/bbl range – with US shale producers increasing supply and hedging activity when prices reach the top of this range – will not be a game-changer petro FX.”