Organization: Further loosening the oil production by OPEC+ will make the oil market more vulnerable to shocks.

DNB Carnegie analysts indicate that if OPEC+ decides to cancel the second round of production cuts, global idle oil capacity will rapidly diminish. This possibility may be discussed at the policy meeting on Sunday. If the second phase of cuts is completely canceled, the related production increases will gradually be implemented within four to six months. This means that other oil-producing countries will have almost no additional production capacity to address sudden demand growth or supply disruptions, making the global oil market more vulnerable to external shocks.