Citi Research said in a note the final market impact of OPEC+ decision to slash oil production would depend on the agreement duration, and expects major consumers to “react with displeasure” to the deal.<\/p>\n
OPEC+ agreed to its deepest cuts to production since the 2020 COVID-19 pandemic, despite a tight market and opposition to cuts from the United States and others.<\/p>\n
“Our projections for 2023 without this cut was for a 2.1 million barrels per day (bpd) average oversupply, given weak demand and relatively ample supply, so such a real over 1 million bpd cut could halve this surplus,” the note added.<\/p>\n
OPEC’s de-facto leader Saudi Arabia said the cut of 2 million bpd of output – equal to 2 per cent of global supply – was necessary to respond to rising interest rates in the West and a weaker global economy.<\/p>\n
“U.S. Congress could be compelled to resurrect the so-called NOPEC (No Oil Producing and Exporting Cartels) bill again … while SPR policy might also shift, and there could be greater impetus to complete an Iran nuclear deal,” Citi said.<\/p>\n
Oil prices rose for a fourth session on Thursday, with Brent at a three-week high.<\/p>\n
Citi also said the possibility of further supply disruptions, potential reshuffle of trade flows amid the upcoming Russian oil price cap and European embargo, and deteriorating macro-economic environment would continue to drive volatility through the winter and 2023.<\/p>\n","protected":false},"excerpt":{"rendered":"
Citi Research said in a note the final market impact of OPEC+ decision to slash oil production would depend on the agreement duration, and expects major consumers to “react with displeasure” to the deal. OPEC+ agreed to its deepest cuts to production since the 2020 COVID-19 pandemic, despite a tight market and opposition to cuts from the United States and others. “Our projections for 2023 without this cut was for a 2.1 million barrels per day (bpd) average oversupply, given weak demand and relatively ample supply, so such a real over 1 million bpd cut could halve this surplus,” the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[133],"tags":[],"class_list":["post-527987","post","type-post","status-publish","format-standard","hentry","category-oil-gas"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/527987","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=527987"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/527987\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=527987"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=527987"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=527987"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}