Oil Market Looks for Production Extensions From OPEC+

Dan Deming from KKM Financial discusses the OPEC Plus meeting in Azerbaijan, focusing on production extensions and market expectations. The IEA report highlights concerns about spare capacity despite low production cuts, affecting oil prices. Venezuelan sanctions pose challenges for OPEC, with political unrest and Iranian waivers adding complexity. US production trends and narrowing WTI Brent spreads are also analyzed.

What is the primary expectation from the OPEC Plus meeting in Azerbaijan?

• Increase in oil production

• Extension of production cuts

• Introduction of new oil reserves

• Reduction in oil prices

What concern did the International Energy Agency report highlight regarding oil prices?

• Excessive spare capacity

• Lack of demand for oil

• High production costs

• Decreasing oil quality

How might Venezuelan sanctions affect the oil market according to the discussion?

• Increase in oil imports

• Decrease in sour crude supply

• Stabilization of oil prices

• Rise in renewable energy use

What are the potential wild cards that could interfere with current production cuts?

• New oil discoveries

• Iranian waivers and political unrest

• Technological advancements

• Environmental regulations

What is causing the narrowing of the WTI and Brent spreads?

• Introduction of new oil tariffs

• Increase in global oil demand

• Decrease in oil exploration

• US production topping out