Asia shrugs off OPEC supply rise as refiners grapple with crippled demand

S&P GLOBAL PLATTS | Middle Eastern sour crude supply is expected to increase this month after OPEC+ members on July 15 agreed to pare back their production cut commitment. But Asian consumers, who under normal circumstances would have welcomed the move, have barely taken notice.

It remains to be seen where all this excess oil will eventually end up as Asian buyers grapple with crippling demand and have to tweak refining strategies to minimize losses.

S&P Global Platts Analytics in a recent note said that it sees Dated Brent struggling to remain above $40/barrel over the next couple of months as supply is on the rise, but demand growth faces a slowdown on a worsening COVID-19 scenario.

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