Oil is not going to fight

Oil is not going to fight The UAE can be considered the winner of the OPEC + summit: the country received an increase in volumes by 200,000 bpd for the next year due to African participants who refused part of the unused quotas. Saudi Arabia promises an additional 1 mln bpd of production cuts in July. This is the main outcome of the meeting; the rest is petty games of tolerance.The tricky win-win deal came after an unexpected quarrel with representatives of Africa: the disagreement sparked a series of bilateral discussions, during which the ministers discussed many issues not related to the current agenda of the meeting. It was decided that 2024 production figures for Angola, Congo, Nigeria, Mexico and Russia are subject to independent assessment and possibly adjustment.Given the previously adopted restrictions, the nominal reduction in volumes should remain at 3,66 mln bpd but the real market volume may even increase.Prolongation of the policy of reducing oil production confirms the threat of uncontrolled inflation and recession. Moreover, the OPEC + decision complicates the life of the Biden administration: the US urgently needs to restore reserves for subsequent speculative sales before the elections, but if you buy oil now, inflation will accelerate, which is very unpleasant. Now any US manipulations in the commodity markets lead to a decrease in the rating of the president's team and there are no fresh political decisions.The first reaction on the main futures has already been worked out  in fact, OPEC is only redistributing volumes. In the next two months, it will be American oil that will be the beneficiary of market dynamics.We remind you that everyone benefits from high prices. But when the incomes of one part of the producers grow at the expense of the other, then conflicts are inevitable. This is exactly what happened on the eve of the COVID pandemic, and only a strong increase in demand can reduce this risk.So all hope is only in China.Profits to yall!#ForexChief #opec #wti #market #forexnews #stocks #worldnews #brent #StockMarket