An OPEC+ extension of production targets through the rest of the year seems highly likely, according to Jefferies.

An OPEC+ extension of production targets through the rest of the year seems highly likely.

That’s according to Jason Gammel, an equity analyst at investment bank Jefferies, who expressed the view in a research note sent to Rigzone on Friday.

In the note, Gammel said the OPEC+ decision on extending output cuts and the upcoming Trump/Xi summit will set the stage for crude prices. Gammel also warned in the note that the next 12 days could be volatile for crude “even absent conflict risks”.

Crude prices are currently spiking on increased Middle East tensions after Iran shot down a U.S. drone in what the United States claims is international airspace, Gammel highlighted in the note.

The 176th meeting of the OPEC conference is scheduled for July 1 and the sixth OPEC and non-OPEC ministerial meeting is set to take place on July 2, according to OPEC’s website. OPEC was previously scheduled to meet on June 25 and a combined OPEC and non-OPEC meeting was set to occur on June 26.

In a research note sent to Rigzone earlier this month, Gammel said it seemed increasingly that between inventory builds and price action OPEC+ will need to extend production cuts into the second half of the year.

Earlier this week, U.S. President Donald Trump revealed on Twitter that he will have an “extended meeting” with president Xi of China at the G-20 summit in Japan.