On Friday, oil prices slipped as the market is worrying about the Organization of Petroleum Exporting Countries and non-member oil producer allies (OPEC+)’s commitment to the output cuts.
As of 01.06 GMT, Brent crude oil futures edged down by 0.2% or 8 cents to USD39.91/barrel, and US WTI crude futures dipped by 0.4% or 15 cents to USD37.26/barrel.
The oil market is viewing OPEC+ to be having a hard time to find consensus relating to the deepening output cuts as the meeting originally scheduled on June 4 was postponed to Sunday amid discussions about some producers’ poor compliance to the pact.
ANZ Research noted another thing raising doubts over the output cut pact would be the possibilities of some producers to relax their current over-compliance which would increase output in the next few weeks even when OPEC+ prolonged its 9.7 million bpd cut to end-July.
If the group could not reach an agreement to extend the current level of an output cut, the level could go back to a 7.7 million bpd cut from July to December as agreed previously.
