Following last night’s major build in gasoline inventories, the bullish exuberance in crude took another spill this morning as sources say Saudi Arabia is set to increase output yet again to a new record high. Furthermore, Qatar’s energy minister urged OPEC and NOPEC to “do something” warnings that another failed meeting would “cause more damage than good.”
Saudi Arabia was “quietly telling” the market output could rise in Aug. to as high as 10.8m-10.9m b/d, Reuters reports, citing one unidentified person from outside OPEC familiar with the matter.
Qatar’s Al-Attiyah Says OPEC and Non-OPEC ‘Need to Do Something’
It’s “hard to say” whether OPEC will reach freeze deal w/ non-OPEC producers, Qatar’s former energy minister Abdullah Bin Hamad Al Attiyah says in phone interview.
Another failed meeting would “cause more damage than good”
“OPEC and non-OPEC should be very careful on holding a new meeting without proper consent and preparation”
Freeze deal wouldn’t have huge impact on fundamentals but would boost mkt sentiment
Mkt still oversupplied by ~1.2m b/d-1.5m b/d, may need until end-2017 to fully rebalance
And now all eyes will be on DOE data at 1030ET
via http://ift.tt/2b17lw6 Tyler Durden