Prestige Economics' Schenker on the OPEC+ Deal

The video discusses the market's reaction to the OPEC Plus deal, highlighting concerns about the delta variant affecting oil demand. It explores the gradual increase in OPEC production and its impact on US shale producers, predicting higher oil prices in the future. The discussion also covers OPEC's strategy to maintain profitable oil prices without pushing consumers towards electric vehicles. Finally, it considers the potential response from the Biden administration to these market changes.

What is one reason for the current decline in some equity markets?

• Decreased travel restrictions

• Rising vaccination rates

• Concerns about the delta variant

• Increased oil production by OPEC+

How is OPEC+ planning to adjust oil production?

• By reducing production by 400,000 barrels a day each month

• By increasing production by 400,000 barrels a day each month

• By maintaining current production levels

• By doubling production immediately

What is the expected price range for WTI in Q2 and Q3 next year?

• $70 to $75

• $90 to $95

• $80 to $85

• $60 to $65

Why does OPEC+ want to avoid oil prices reaching $100?

• It would stabilize the market

• It would decrease global demand

• It would cause a shift to electric vehicles

• It would lead to increased drilling

What kind of response is expected from the Biden administration regarding the OPEC+ strategy?

• A measured response similar to central banks

• Political measures to reduce oil prices

• Immediate increase in US oil production

• No response at all