The Day at a Glance | June 29 2021

The Top

*OPEC+ could reach agreement to increase crude oil production in its meeting on Thursday.

*Food prices and droughts worry Mexico`s Central Bank: Gerardo Esquivel.

*Concerns are raised due to the spread of the virus`s delta variant in Asia.

*Economic indicators: Inflation in Germany set at 2.3% annual in June (2.5% e.).

Economic environment

OPEC+ is expected to increase crude oil production. As economic activities return to normalcy and demand for energy recovers, members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) consider continuing to increase the supply of crude oil at a global level. The organization is expected to increase production in 500 thousand daily barrels starting in August, a decision that could be taken on Thursday in the organization`s monthly meeting. Today, the organization`s technical committees will hold meetings in order to evaluate oil market conditions at a global level. In recent days, oil prices have receded in light of concerns of an accelerated spread of the virus`s delta variant in Asia. It`s feared that the virus`s spread could eventually affect Europe, where cases of the virus`s variant have also been reported. It`s possible that these circumstances – and the recent nuclear pact negotiations with Iran – will be discussed in the OPEC`s meetings, which could lead to a more cautious stance that avoids its commitment to increase production in more than 500 daily barrels.