Amid speculations of a rise in supply from OPEC+ producers, oil has dropped. It also clashes with the coronavirus’ Delta variant ravaging the world and threatening a rebound in demand. Futures in New York were as low as 1.5% on Monday.
According to Bloomberg reports, The Organization of Petroleum Exporting Countries and its allies will meet on Thursday and discuss boosting output by 550,000 barrels a day.
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The Delta variant continues to spread across Asia and Australia resulting in lockdowns. The variant is found in nearly all positive cases in the UK and is slowly making progress across Europe.
Oil markets analyst at Rystad Energy, Louise Dickson, suggested a more cautious approach due to the spreading of the Delta variant, stating “we believe OPEC+ should take an even more cautious approach, only raising production by 100,000 to 200,000 barrels per day, month-on-month in August,”