There could be some fireworks in the oil market at the weekly open.
Iraqi Oil Minister Made a comment Which indicates that they will not agree to any additional cuts at the OPEC+ meeting on June 1.
What is not clear is whether he meant:
- They will extend existing cuts but will not reduce them any further
- They will not reduce production at all, and will abandon current quotas
I hope we get some clarification before the market opens but it doesn't look good. A journalist asked him whether Iraq would agree to extend the current voluntary cuts, and he replied:
“Iraq has reduced (production) sufficiently and will not agree to any new cut.”
Take this for what it's worth.
In addition, Iraq exceeded its quota by 602,000 barrels per day in the first quarter, and OPEC said it agreed to compensate for the remainder of the year, but this statement certainly calls that assumption into question.
I expect to see some pressure on oil at the open.