{"id":563706,"date":"2021-07-13T04:00:49","date_gmt":"2021-07-13T04:00:49","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/13\/oil-supply-looks-like-it-will-remain-tight-through-august\/"},"modified":"2021-07-13T04:00:49","modified_gmt":"2021-07-13T04:00:49","slug":"oil-supply-looks-like-it-will-remain-tight-through-august","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/13\/oil-supply-looks-like-it-will-remain-tight-through-august\/","title":{"rendered":"Oil supply looks like it will remain tight through August"},"content":{"rendered":"

<\/a> Oil supply looks like it will remain tight through August<\/strong>: Saudi Arabia and the UAE have both fixed supply volumes for August, meaning that even if the two countries did find a way to resolve their dispute<\/a> and agree to raise production, it\u2019s unlikely the market will see new supply next month, Bloomberg<\/a> suggests. Complicating matters further is Eid Al Adha, which will see most government offices and businesses closed next week, likely delaying the next OPEC+ gathering until the end of the month or early August.<\/p>\n

This will likely mean at least another two weeks of uncertainty for the market<\/strong>, with participants unsure about whether new supply will be made available or even when producers will next meet to discuss the matter. The price of Brent has fallen a little over 1% since before the ill-fated meeting last Monday, now hovering above USD 75\/bbl. But with no extra barrels hitting the market, supply remains tight, making higher prices in the coming days and weeks a distinct possibility.<\/p>\n

Not that this is a bad outcome for the GCC, whose economies stand to benefit from<\/strong> higher oil prices<\/strong>, Daman Investments head of asset management Ali El Adou told Bloomberg<\/a>. \u201cThe market is trying to price in a [agreement] from OPEC+, although we're still seeing higher demand for oil, and this is impacting GCC economies positively,\u201d El Adou said. With high vaccination rates across most GCC nations, economies are set to imminently reopen, and GCC banks can expect to see gains, while balance sheets could reflect surpluses if oil remains high.<\/p>\n

Also worth noting this morning;<\/strong><\/p>\n