Some OPEC members plan for output increase – WSJ Sources
|The Wall Street Journal reports that while there are no formal plans to push for OPEC to increase output, some members are planning for it. This has seen the oil market sell-off:
WTI H1 chart
The OPEC+ group of producers continues to underproduce, which had taken the sting out of the highly anticipated 430k bpd output hike this month.
''Following a decade of underinvestment, the world's spare capacity is left in the hands of a few Gulf nations,'' analysts at TD Securities said. ''With few able to ramp up production, deal compliance has already risen to a massive 220% last month, and Russian output is likely to continue to suffer in coming months. The insurance and re-insurance of Russian cargoes will likely also become an operational bottleneck driving Russian production lower.''
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