OPEC+ Supply Move Spooks Oil Traders Still Waiting for Summer
- Global physical crude traders still dealing with a supply glut
- OPEC+ producers plan to gradually return barrels from October
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OPEC+’s surprise decision to return oil supply to the market later this year has alarmed traders of physical cargoes, who say there’s limited evidence yet of a long-awaited improvement in the global market that would justify the move.
On Sunday, the Organization of Petroleum Exporting Countries and its allies announced that eight nations within the alliance would from October gradually restore 2.17 million barrels a day of supply that they’ve been voluntarily withholding to prop up prices. Implementation of the decision will take place over a 12-month period and depends on the market at the time.