OPEC+ oil overproduction in May-July seen at 2.31 million bpd – Reuters

The Organization of the Petroleum Exporting Countries (OPEC) in its allies, the group known as OPEC+, needs to compensate for May-July's 2.31 million barrels per day (bpd) overproduction in August-September, Reuters reported, citing an internal document.

"OPEC+ sees an alternative scenario where stronger, more prolonged second virus wave in H2 2020 leads to lower economic recovery and weaker oil demand," the document further revealed. "OPEC+ alternative scenario sees demand falling by 11.2 million bpd in 2020, sending Q4 OECD commercial oil stocks to 233 million barrels above the 5-year average."

Market reaction

Crude oil prices edged lower in the last minutes and the barrel of West Texas Intermediate (WTI) is down 0.86% on the day at $42.38