MBCC TH 3rd Jun'24 - "Is OPEC also check mated, what did they announce and what does that mean for Oil!"

Summary of the OPEC plus policy today:

1. The group will extend its collective cuts (a mix of voluntary and group cuts) which amount to around 3.6 million bpd until the end of 2025.

2. The 8 states which offered the 2.2 million bpd voluntary cuts will extend those till q3 2024. After that they will start being back production gradually from October 2024 till September 2025, subject to market conditions. (source Amena Bakr).

So what does this mean for the Oil price, where is it going?