1 millions opec + is comming And so, from JPM's strategist to OPEC+'s ears because moments ago the FT reported that what until recently was unthinkable, is suddenly all too possible and largely thanks to the (mostly) Arabic resentment at what Israel is doing in Palestine: according to the FT, not only is Saudi Arabia prepared to prolong oil production cuts well into next year but Opec+ is weighing further reductions in response to falling prices and rising anger over the Israel-Hamas war.
Why? Because while OPEC+ is not getting directly involved in the Gaza war, it certainly did not expect the Biden oil trading desk to hammer oil as hard as it did. If anything, it was expecting oil prices to rise above $100. Or as the FT puts it, "an additional Opec+ cut of up to 1mn b/d could be on the table, one informed person said, describing the cartel as “galvanised” by the conflict."