Saudi oil output cuts unlikely to lift prices to high $80s-low $90s: Citi
Top global crude exporter Saudi Arabia’s pledge to deepen output cuts is unlikely to underpin a sustainable price increase into the high $80s-low $90s, Citi said in a note on Tuesday, even as other brokerages signalled a bigger deficit in the second half.
Weaker demand and stronger non-OPEC supply by year end, potential recessions in the U.S. and Europe, and lower growth in China could push prices lower rather than higher this year and in 2024, analysts at Citi said.
“The likelihood that Saudi Arabia would tackle this on its own on a sustained basis is quite low,” Citi said.
