Crude Oil Price - OPEC+ May Raise Output In August. What Will Be The Effects Of Joe Biden's Visit To Saudi Arabia?

OPEC+ Meeting: Saudi Arabia Implements Deeper Voluntary Cuts to Boost Oil Prices

Oil higher amid supply outages

Oil prices are edging higher again on Friday after paring gains over the last couple of days. With OPEC+ opting to raise production by 648,000 again in August but not comment beyond then, there is a cloud of uncertainty over the supply side again. Not that the group has delivered on its prior promises. Perhaps US President Joe Biden can convince Saudi Arabia and others to utilise what spare capacity they have during his trip to the Middle East this month although past efforts haven’t been particularly successful.

Outages in Libya as a force majeure were called at the Es Sider and Ras Lanuf ports, and El Feel oilfield, which means exports have fallen by around two-thirds compared to normal. Meanwhile, in Norway, strike action next week could hit production by around 4%. The tight market is here to stay and the only real case for significant price declines is a recession, sadly. ​ ​

Gold finally breaks out

My gold commentary has been getting shorter and shorter over the weeks as there’s only so many ways to say it’s still rangebound around USD 1,830. So I, for one, am quite interested to see it breaking below USD 1,800 this morning as the dollar eyes its mid-June peaks. The greenback has done well against the backdrop of much higher interest rates, very aggressive tightening expectations and risk aversion. A weekly close below USD 1,800 could spell trouble for the yellow metal.

For a look at all of today’s economic events, check out our economic calendar:

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OPEC+ Meeting: Saudi Arabia Implements Deeper Voluntary Cuts to Boost Oil Prices

Craig Erlam

Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.