OPEC+ Slams Reuters Leak On Oil Plans As "Wholly Inaccurate And Misleading"
Submitted by Julianne Geiger of OilPrice.com
Reuters and its anonymous (oil-shorting) sources are again stirring the oil market. This time, the wire says OPEC+ is preparing another supply hike in November, with Saudi Arabia pushing for something big and Russia urging restraint. But if recent history is any guide, a report of rising quotas doesn’t necessarily translate into rising barrels... and OPEC is getting increasingly irritated with the narrative.
According to Reuters’ unnamed insiders, Riyadh wants an increase of 274,000 to as much as 548,000 bpd, while Moscow is said to prefer another modest 137,000 bpd bump. The group’s eight key producers are due to meet virtually on Sunday to decide. But it’s hard to forget that just three days ago, OPEC issued an unusually sharp rebuke of the media, flatly rejecting circulating reports of a half-million-barrel hike as “wholly inaccurate and misleading.” The statement was widely read as a direct shot at Reuters, whose reports had already knocked prices lower.
The bigger issue is the difference between quota hikes and actual production increases. OPEC+ has been promising staged increases since April as it unwinds cuts, but it’s only managed to deliver about 75% of those barrels. Many members can’t raise production even if they want to.
Nigeria, Angola, and Iraq are still repaying earlier overproduction through “compensation cuts,” while only Saudi Arabia and the UAE have meaningful spare capacity.
That leaves traders stuck parsing press leaks against physical reality. On paper, OPEC+ could announce another big hike. In practice, the barrels may never show up. The result is market theater: Reuters reports a glut-in-the-making, OPEC pushes back to protect the narrative, and prices swing on expectations rather than evidence.
Brent crude is already down more than 7% this week on the latest supply-hike chatter, even though the “extra” oil hasn’t actually arrived. For now, the gap between quota headlines and physical flows is as wide as ever.
Tyler Durden
Sat, 10/04/2025 - 18:40
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