Crude oil prices are trading at fresh two-and-half year highs during Monday’s APAC mid-day session, riding the tailwinds of US fiscal stimulus, falling inventories and an OPEC+ plan to further raise output in August. The oil cartel and its alliance will hold a meeting on July 1st, in which they may decide to lift pandemic-era production curbs to meet pent-up demand for fuel.
According to a Bloomberg survey, OPEC+ may boost output by 550k barrels a day in August. This amount marks less than a quarter of the global supply shortfall of 3 million barrels a day, according to Goldman Sachs’ estimation. Therefore, tight market conditions may warrant a slow and gradual output increase without causing significant price volatility.
Valeura Energy Inc (LON:VLU) is an upstream oil & gas company, with a clear strategy to add value for shareholders. The Company has a strong balance sheet positioning it for potential inorganic growth opportunities in the near/medium-term, and substantial longer-term upside potential through an operated deep, tight gas play.