OPEC and its allies are not expected to deepen supply cuts at their upcoming ministerial meeting, despite a recent drop in oil prices to around $70 per barrel.
The group, known as OPEC+, pledged voluntary cuts starting from May and continuing until the end of the year, in addition to a 2 million barrels per day cut agreed upon in October 2020.
However, Nigeria and Angola missed their output targets by a combined 600,000 bpd in May, while Iraq produced 220,000 bpd below its target due to outages in the Kurdistan Region. Though some market watchers interpreted comments from Saudi Arabia's energy minister as a warning of additional supply cuts, Russian Deputy Prime Minister Alexander Novak said he did not expect any new steps from OPEC+.
While some sources suggest that the meeting's outcome is uncertain, HSBC and Goldman Sachs do not anticipate a change in OPEC+ policy, though the group may cut output later if prices remain below $80 per barrel in the second half of the year.
