Helima sums it up Helima Croft, head of global commodity strategy at RBC Capital Markets, emphasized that the OPEC+ plan to increase oil supply is not binding. Saudi Arabia will “hit the kill switch” on a fourth-quarter production increase if the market is oversupplied or sentiment is poor come September, Croft said.
“The intention has always been to slow roll the barrels back in and not to send the market into a tailspin with a supply surge,” Croft told clients in a research note Tuesday. “Since Saudi Arabia will be providing the lion’s share of the new barrels, it will not be bound by Sunday’s supply schedule if it is not in their national interest,” she said.