OPEC+ will likely agree to further oil output hike on Sunday, sources say
1. OPEC+ may increase oil output, but at a slower rate. 2. Global demand for oil is likely decreasing with the end of driving season.
FAQ
Why Bearish?
With a potential slowdown in global oil demand and only a modest increase in output, BNO could see downward pressure on oil prices. Historically, similar situations have led to decreased oil fund performance.
How important is it?
The news directly relates to oil supply and demand dynamics, directly impacting BNO as it tracks Brent crude oil prices.
Why Short Term?
The implications of reduced demand and increased supply are likely to impact oil prices in the immediate future, similar to past behaviors observed during seasonal shifts.