- Oil prices rose Monday morning by about 1%, a week where OPEC and its allies gather to discuss their oil supply policy
- Ahead of Thursday’s OPEC+ meeting, Kuwait’s oil minister said he supports raising output by 400 MBbl/d
- OPEC+’s plan to continue increasing supply by 400 MBbl/d has been challenged by consuming nations who say OPEC needs to supply more oil in the face of tight supplies
- President Joe Biden said he was reluctant to describe what he planned to do if oil-producing nations don’t boost output (Bloomberg)
- Asked how the U.S. would respond if OPEC governments don’t act, he said, “What we’re considering doing, that I’m reluctant to say before I have to do it.”
- A senior Biden administration official said over the weekend that the U.S. hoped to see production increase I the short term but stands by its longer-term goal of continuing to transition to more reliant on renewable energy sources
- China may be forced to start purchasing crude at elevated prices to replenish its declining stockpiles (BBG)
- Commercial and strategic oil inventories have shrunk to the lowest level since November 2018 in terms of filled capacity, according to Kayrros, which tracks supplies at about 190 terminals
- “The level looks as low as it can go, and refiners may start restocking from here,” said Yuntao Liu, an analyst with Energy Aspects in London