OPEC+ panel underscores fragility of oil market and uncertainties related to demand

OPEC+ Technical Committee sees July compliance with oil output cuts at 95% and expects it to reach 97% including Mexico, Reuters reported on Monday, citing a draft document.

Additional takeaways

"Committee considered a scenario of substantial downside risk on demand if virus situation worsens."

"OPEC+ panel underscores the fragility of the oil market and uncertainties related to oil demand."

"OPEC+ panel calls for vigilance and monitoring of the implementation of compensation for overproduction."

"OPEC+ technical panel will meet next via teleconference on September 16."

Market reaction

Crude oil prices edged higher in the last hour and the barrel of West Texas Intermediate (WTI) was last seen gaining 1.15% on a daily basis at $42.68.