- Oil is trading higher, but heading for the largest weekly drop since February
- Oil is heading for a weekly loss of more than 6% as geopolitical risk premium eases in the Middle East and the US looks to broker a ceasefire between Israel and Hamas
- OPEC may need to deal with capacity questions at next meeting (BBG)
- While the primary question for OPEC will be whether or not to continue its supply cuts through the second half of the year, it may also need to discuss the issue of longer-term production capacity
- The UAE, Iraq, and Kazakhstan stand to bolster their production capacity by more than 300 MBbl/d next year, with the UAE advertising this week that it has already increased capacity by 200 MBbl/d to 4.85 MMBbl/d
- 2025 market balances remain an issue for OPEC as well, as even if supply cuts are instituted through the end of the year, it does not address balances in 2025
