OPEC Meeting: Sunday OPEC+ Meeting Should be Uneventful

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The OPEC+ joint ministerial monitoring committee (JMMC) meeting on Sunday should be uneventful, at least according to Jason Gammel, an equity analyst at Jefferies.

“OPEC Secretary General Barkindo has already indicated that it is too early to make any decisions on extending/ending production targets,” Gammel said in a research note.

“Any decisions will most likely be made at the OPEC+ meetings [on] June 25 and 26,” he added.

In the research note, Gammel said any production increases will cut into spare capacity that is already very low, “particularly in light of attacks on/near the two primary pieces of infrastructure built to circumvent the Straits of Hormuz”.

“While [the] International Energy Agency (IEA) stressed demand uncertainty this week, we believe supply uncertainty is much more material,” Gammel added.

The IEA cut its oil demand growth  to 1.3 million barrels per day (MMbpd) in its latest oil market report. The alteration marked the first change to the IEA’s 2019 demand outlook for several months. Prior to the cut, the IEA’s oil demand growth forecast for 2019 stood at 1.4 MMbpd.

OPEC is scheduled to meet in Vienna, Austria, on June 25. On June 26, an OPEC and non-OPEC ministerial meeting is scheduled to take place in the city. Back in March, the JMMC adopted a recommendation to forego a full ministerial meeting in April and instead schedule a JMMC meeting in May.