OPEC+ Unlikely to Change Oil Production Policy at Meeting on August 1, Sources

A model of oil rigs in front of the OPEC logo (Reuters)

London: Asharq Al Awsat

06:40-19 July 2024 AD ـ 12 Muharram 1446 AH

London: Asharq Al Awsat

06:40-19 July 2024 AD ـ 12 Muharram 1446 AH

OPEC+ Unlikely to Change Oil Production Policy at Meeting on August 1, Sources

A model of oil rigs in front of the OPEC logo (Reuters)

A mini OPEC+ ministerial meeting next month is unlikely to recommend changing the group's output policy, including a plan to start unwinding one layer of oil output cuts from October, three sources told Reuters.

The Organization of the Petroleum Exporting Countries and allies led by Russia, or OPEC+ as the group is known, will hold an online joint ministerial monitoring committee meeting (JMMC) on Aug. 1 to review the market.

One of the three OPEC+ sources, all of whom declined to be identified by name, said the meeting would serve as a “pulse check” for the health of the market.

Oil was trading around $85 a barrel on Thursday, finding support from Middle East conflict and falling inventories. Concern about higher for longer interest rates and demand has limited gains this year.

OPEC+ is currently cutting output by a total of 5.86 million barrels per day (bpd), or about 5.7% of global demand, in a series of steps agreed since late 2022.

At its last meeting in June, OPEC+ agreed to extend cuts of 3.66 million bpd by a year until the end of 2025 and to prolong the most recent layer of cuts - a 2.2 million bpd cut by eight members - by three months until the end of September 2024.

OPEC+ will gradually phase out the cuts of 2.2 million bpd over the course of a year from October 2024 to September 2025.

Russian Deputy Prime Minister Alexander Novak, asked this week if the market was strong enough to take the extra volume from October, did not rule out tweaks to the agreement if needed.

“Now we have such an option (of output increase), as we said earlier, we will always evaluate the current situation,” Novak said.

In June, Saudi Energy Minister Prince Abdulaziz bin Salman had said OPEC+ could pause or reverse the production hikes if it decided the market is not strong enough.

The JMMC usually meets every two months and can make recommendations to change policy which could then be discussed and ratified in a full OPEC+ ministerial meeting of all members.

Meanwhile, oil prices extended gains on Thursday, buoyed by a bigger than expected decline in crude stocks in the United States, the world's largest oil consumer.

Brent futures rose 41 cents, or 0.5%, to $85.49 a barrel by 0819 GMT and US West Texas Intermediate (WTI) crude was up 69 cents, or 0.8%, at $83.54, with both having registered gains in the previous session.

US crude inventories fell by 4.9 million barrels last week, data from the US Energy Information Administration showed on Wednesday.

UK Offers Cheaper Chocolate, Tickets to the Zoo to Ease Cost of Living Squeeze

Britain’s Prime Minister Keir Starmer visits a children’s activity center in Essex, Britain, Thursday, May 21, 2026. Kin Cheung/Pool via REUTERS

London: Asharq Al Awsat

06:59-22 May 2026 AD ـ 05 Thul-Hijjah 1447 AH

London: Asharq Al Awsat

06:59-22 May 2026 AD ـ 05 Thul-Hijjah 1447 AH

UK Offers Cheaper Chocolate, Tickets to the Zoo to Ease Cost of Living Squeeze

Britain’s Prime Minister Keir Starmer visits a children’s activity center in Essex, Britain, Thursday, May 21, 2026. Kin Cheung/Pool via REUTERS

The British government is offering cheaper chocolate and discounted entry to theme parks as it seeks to ease a cost-of-living squeeze and win back voters.

Treasury chief Rachel Reeves on Thursday announced modest handouts to help alleviate rising costs sparked by the Iran war, including a reduction in import tax on cookies, chocolate and about 100 other supermarket products.

UK inflation fell to 2.8% in April, down from 3.3% in March, but is expected to spike again on the back of higher prices for fuel, heating gas and electricity.

To ease the impact, the government has postponed a planned increase in fuel duty and given truckers a yearlong reprieve from road tax to help offset soaring gasoline prices due to the effective closure of the Strait of Hormuz, a key oil transit route.

But Reeves did not commit to broader support for household heating bills, The Associated Press reported.

She announced measures designed to boost the summertime economy, including free bus travel for children in August. During the summer, tax on tickets for attractions including zoos, theme parks and museums will be slashed from 20% to 5%.

Reeves said she would pay for the cost-of-living support by closing tax loopholes for oil and gas companies with overseas operations.

“This summer I want every family to be able to enjoy themselves,” Reeves said. “As the war in Iran pushes prices up at home, my economic plan is the right one. I will continue to make the right choices, to protect households and businesses, and build a stronger and more secure Britain.”

The announcements came as Prime Minister Keir Starmer tries to keep calm and carry on while rivals in the governing Labour Party seek to oust him after a set of disastrous local election results.

The last two weeks have been devastating for Starmer, who led the party to a landslide victory less than two years ago. Scores of Labour lawmakers have called for him to resign, and he is widely expected to face a leadership challenge. Greater Manchester mayor Andy Burnham is aiming to win a seat in Parliament in a June 18 special election, and then challenge Starmer for the prime minister’s job.

Starmer insists he will not resign and will fight for his job. Under UK political rules, whoever took over from Starmer as party leader would also become prime minister, without the need for a national election.

Business

Oil Gains, Stocks Slip on Uncertain Mideast Peace Prospects

A fuel storage facility at Russia's main oil export hub in the Black Sea port of Novorossiysk (Reuters)

Asharq Al Awsat

15:44-21 May 2026 AD ـ 04 Thul-Hijjah 1447 AH

Asharq Al Awsat

15:44-21 May 2026 AD ـ 04 Thul-Hijjah 1447 AH

Oil Gains, Stocks Slip on Uncertain Mideast Peace Prospects

A fuel storage facility at Russia's main oil export hub in the Black Sea port of Novorossiysk (Reuters)

Oil prices jumped while stock markets mostly retreated and the dollar firmed Thursday as hopes of a Middle East peace accord faded on conflicting headlines on the state of talks.

US President Donald Trump has described the latest discussions as being on the "borderline" between a deal and renewed strikes.

Pakistan's army chief was due in Iran on Thursday, Iranian media reported, with Islamabad mediating as Tehran examines a new US proposal to end the war, AFP reported.

"Markets pulled back across Europe as the waiting game to end the Iran war rumbled on," said Dan Coatsworth, head of markets at AJ Bell.

Wall Street's main indices also dipped at the open.

There were earlier big gains for technology stocks in Asia after chip giant Nvidia posted record quarterly revenue of $81.6 billion, blowing past analyst forecasts on the voracious demand for artificial intelligence hardware.

Sentiment was also boosted by Elon Musk's filing for a public sale of SpaceX shares, which could be the largest initial public offering in history as the rocket and satellite company seeks to raise up to $75 billion.

"This could be a blockbuster summer for IPOs with OpenAI also expected to list in the coming weeks," said Kathleen Brooks, research director at XTB.

"How the market absorbs these new listings will be crucial for the future of the AI trade, as both companies are at the heart of the AI revolution," she said.

South Korea's benchmark Kospi index surged 8.4 percent, helped by Samsung Electronics shares after unions paused a 18-day strike.

Japan's Nikkei index ended with a gain of 3.1 percent.

But despite the group's profit growth, Nvidia shares failed to get a boost as they have in previous quarters, gaining 0.2 percent after trading got underway in New York.

With tech shares, whose staggering rises helped drive markets to record highs in recent months, now considered by many investors to be overvalued, investment analyst Bret Kenwell at eToro said there were worries that a pullback was in store.

"While geopolitical risks could still flare up, the more pressing issue appears to be macro-related," he said, pointing to the recent rise in sovereign bond yields and the prospect of central banks raising interest rates.

The yields demanded by investors to lend to governments by buying their bonds have peaked in recent days, indicating weakening confidence in their economies and inflation fears.

After tech gains in Asia, attention turned to US-Iran war developments and the potential fallout for economies on the continent, sending European stocks lower.

The EU warned Thursday that eurozone growth would be less than expected this year and inflation significantly higher than forecast, as the Mideast war and subsequent energy shock take their toll.

It came as a key survey revealed that business activity in the eurozone contracted further in May, weighed down by weak demand caused by a conflict.

British private-sector activity also unexpectedly contracted this month, marking the first decline in output in over a year, S&P Global added.

"The UK economy is facing a perfect storm, as rising political uncertainty adds to the growing impact from the war in the Middle East," said Chris Williamson, chief business economist at S&P Global Market Intelligence.

In other corporate news, French video game giant Ubisoft saw its shares plunge around 11 percent after it reported disappointing annual results and forecast further pain in the coming year.

The "Assassin's Creed" and "Rayman" developer had warned in January of the likely impact, with seven games cancelled and six delayed.