OIL MKT DRIVERS: OPEC+ Agrees on Cuts Deal; API Stocks Data Due

By Alex Longley

(Bloomberg)

Summary of what’s shaping the oil market on Tuesday: OPEC and its allies signed a charter to formalize their co-operation, while also agreeing to prolong production cuts for another nine months. API inventory data due later. ECB is cool on the prospect of cutting rates in July.

OPEC and its allies agreed to extend oil output cuts by nine months, according to Saudi Arabia’s oil minister

The decision came shortly after the group signed a charter for long-term OPEC+ cooperation
Saudi Arabia’s energy minister said a prolonged deal to cut output will prevent a 100m bbl inventory build-up
The prompt Brent spread weakened, falling to its softest level since March

The API issues its weekly U.S. oil inventory report at 4:30pm ET, with crude stockpiles forecast to decline by 3m bbl in EIA data Wednesday, according to a Bloomberg survey of analysts
Policy makers at the European Central Bank are said to be in no rush for a reduction in interest rates in July; equities were mixed, with European markets higher and U.S. futures edging lower
Russian oil production rose 0.4% in June to 11.155m b/d, according to energy ministry data
Saudi Aramco is restarting work on the world’s largest IPO

To contact the reporter on this story:
Alex Longley in London at alongley@bloomberg.net

To contact the editors responsible for this story:
Alaric Nightingale at anightingal1@bloomberg.net
John Deane