OPEC+ sticks to production increase for the time being – Commerzbank

At a virtual meeting of the Joint Ministerial Monitoring Committee (JMMC) of the OPEC+ oil ministers at the weekend, the only thing that was apparently discussed was better compliance with existing production targets, Commerzbank's commodity analyst Carsten Fritsch notes.

Oil market is at risk of facing a considerable oversupply

"New plans for cuts to compensate for previous overproduction are to be submitted by the respective countries by 15 April. There is no mention of a reassessment of the sharp increase in production announced for May."

"Instead, the press release only contains the usual wording stating that an OPEC+ meeting can be convened at any time at the request of the JMMC. The next regular official OPEC+ meeting is on 28 May."

"If OPEC+ sticks to the planned production increase of 411 thousand barrels per day in May, the oil market is at risk of facing a considerable oversupply in the short term, which would put further pressure on oil prices."