Opec and non-Opec face high stakes at 22-23 June meeting

The OPEC meeting scheduled for June 22 and 23 is rife with uncertainty. The group must contend with differing production expectations for Iran and Venezuela, and consider external pressure for action from the US. For Iran, the exact impact of the newly restored US secondary sanctions still remains unknown. And in Venezuela, the production outlook remains highly uncertain as the country battles with hyper inflation, shortages in equipment, and an increasingly complex export infrastructure story. The US is keen to see production raised by at least 1 million b/d to help address perceived crude losses in the market – in effect lowering oil prices to avoid damage to economic growth from higher prices. How does the group prepare for this rapidly evolving situation? In this Insight we present three options for OPEC and non-OPEC.