Will OPEC+ surprise global oil markets? The MUFG Global Markets Podcast

Oil prices ended May at their lowest point for over eight months, raising pressure on OPEC+ to implement another round of production cuts at its 3-4 June meeting.

Ehsan Khoman, Head of Commodities, ESG and Emerging Markets Research (EMEA), believes that the current tight fundamentals in the physical oil market do not provide a case for further OPEC+ production cuts, although the bearish macro environment does. On net, he believes the decision is finely balanced and will likely conclude by the group communicating a hawkish wait-and-see approach and not taking additional barrels off global markets.

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