OPEC+ Output Cuts Increasingly Important For Oil Market Recovery

Despite a moderate price rebound on Wednesday, oil markets have been under significant pressure since last week. Brent prices closed the week at $42.66, down by 6.88% w/w, while WTI closed at $39.77, down by 7.45% w/w, the largest weekly drop since June. The production recovery in the Gulf of Mexico, which was hit by hurricane Laura, caused a shift in sentiment. Next to this, uncertainty about OPEC+ compliance and rising OPEC+ supply in August has contributed significantly to the price decline. Iraq may be asking for an additional…