OPEC Likely to Extend Production Restraint

This month, OPEC members produced about 25.5 million b/d, roughly 1.1 million b/d less than the October 2018 baseline production, exceeding compliance with their pledged cuts by about 300,000 b/d. Given concerns over weak oil demand and soft oil prices, OPEC is likely to extend the current production restraint at the July 1-2 meeting. The G20 Osaka summit in the meantime is unlikely to change this outcome, although it bears watching as some participants have lobbied for deeper cuts.