OPEC+ agreed on Wednesday to ease its self-imposed production cuts starting next month as the global economy slowly awakens from its deep Covid-19 slumber. The organization has been curtailing output since May by 9.7 million barrels per day, or ~10% of global supply, following a demand meltdown due to widespread lockdown but now plans to taper the cuts to just 7.7 million bpd until December. The oil markets are reacting negatively to the cartel’s latest move, with WTI price down 1.24% to $40.70/barrel at 7am CST on Thursday, while Brent crude has dipped 0.75% to trade at $43.46/barrel. While these moves could be interpreted as normal market gyrations, they could also suggest that the market is concerned about this potential: OPEC+ may have rushed to lift the curbs especially with Covid-19 cases spiking again in the pivotal U.S. market. How All 50 States Are Reopening (and Closing Again)–updated July […]