Russia and Saudi Arabia agreed on the need to extend the maximum level of reduction in oil production at OPEC+ by at least one month. Future plans will depend on the market situation. And the situation is not so good.
The OPEC+ negotiations scheduled for June 4 are postponed due to Iraq and Nigeria's failure to comply with their quotas. Iraqi temporary oil minister Ali Allawi referred to "technical problems", so his country was not able to reduce production to an agreed limit. As a result, due to saboteurs the meeting on June 4 will not take place.
Only the technical committee will work. Together with the cancellation of the meeting, the opportunity to formulate delivery schedules and prices for July are postponed. Uncertainty in the oil market will continue until June 9-10 along with a possible local correction in quotes.
Lower oil prices will provoke a local weakening of CAD, NZD, AUD and the strengthening of the US dollar. In major currency pairs, this will result in a possible correction.