Phil Flynn is writer of The Energy Report, a daily market commentary discussing oil, the Middle East, American government, economics, and their effects on the world's energies markets, as well as other commodity markets. Contact Mr. Flynn at (888) 264-5665
What does OPEC Plus have to do? With compliance at 103% percent and the global crude glut evaporating, they still have to worry about a faltering economy. That is the assessment from the International Energy Agency (IEA) that is giving OPEC Plus its due for reducing the oversupply of crude but warning that the possibility that global economies may falter with a potential second wave of Covid-19 is weighing on a market that is worried about the same things.
Reports overnight say that Saudi Crown Prince Mohammed bin Salman and Russia President Vladimir Putin urged OPEC+ oil producers to stick to agreed production cuts, increasing pressure on other members to deliver promised output curbs. During a phone call, the two leaders reviewed global oil-market conditions and are pressing them saying that they need to stay the course and build on their success in case demand falters.