According to UBS,Analyst Giovanni Staunovo reported that with no further supply approaching from OPEC+, the oil market could tighten further and could cause Brent crude to climb to $80 a barrel by the end of September. The bank raised its September Brent and WTI crude price forecasts by $2 a barrel and WTI to $77 a barrel.

UBS said market participants interpreted the non-agreement outcome of the OPEC+ negotiations to mean that no more oil would enter the market in August. Given that negotiations between member states are likely to continue, the OPEC+ is still likely to reach an agreement in the coming days.

It is unclear whether failure to agree on a supply agreement will lead to a drop in compliance rates in August. The official August price announced by Saudi Arabia in the coming days should provide more information.