OPEC+ to further speed up oil output hikes, three sources say
1. OPEC+ may unwind 2.2 million bpd cuts by 2025 due to poor compliance. 2. Increased oil output could affect market prices significantly.
FAQ
Why Bearish?
If OPEC+ increases oil output, supply will rise, potentially lowering oil prices. Historical instances, such as 2014's production hike, caused significant price drops.
How important is it?
Changes in OPEC+ production levels directly influence oil supply, affecting BNO’s performance. A rise in supply often leads to lower prices, impacting BNO negatively.
Why Long Term?
The proposed changes could impact oil prices significantly until 2025, affecting BNO as it tracks crude oil performance.