The oil producer group known as OPEC+ keeps trumpeting its flexible approach to balancing the global oil market. As prices test $80 a barrel, that flexibility needs to include raising the amount of oil they plan to pump in the coming months.
Oil ministers from the Organization of Petroleum Exporting Countries and their allies are due to meet via video conference on Monday, when they will agree on their production target for November. The group has already put in place a program of increases that will see them raise their combined target by 400,000 barrels a day each month until they have restored all the supply they cut last year.
But they need to do more to exercise that flexibility they keep touting. Their own analysts, who presented their findings to the group’s technical committee last week, see global stockpiles continuing to be drawn down over the next two months, before a swing in the opposite direction early next year.
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