Coordinated oil production cuts between OPEC producers and Russia are “highly unlikely” since a deal would require further cooperation between OPEC members amidst Iran’s growing production and ongoing rift with Saudi Arabia, Goldman Sachs said on Sunday. <\/p>\n
Furthermore, coordinated cuts would be “self-defeating” since the higher prices as a result of an announcement of cuts would bring shale oil production back into the market quickly since previously shut wells would restart at prices above $40 a barrel, the bank said. <\/p>\n
Oil prices rebounded last week from 12-year lows on indications of talks between Russian officials, Saudi Arabia and other OPEC members to cut output up to 5 percent. <\/p>\n
Oil prices will have to trade between $40 a barrel and $20 in the first part of 2016 in order to curtail supply enough to balance the crude market, said Goldman <\/p>\n
“We reiterate our view that prices need to remain low enough to force fundamentals to create the adjustment back towards a new equilibrium,” Goldman analysts said in a note. <\/p>\n
Oil prices will average just over $40 this year, the biggest cut to monthly forecasts in a year, as an influx of Iranian barrels hits an already-saturated world market, a Reuters poll showed on Friday.<\/p>\n","protected":false},"excerpt":{"rendered":"
Coordinated oil production cuts between OPEC producers and Russia are “highly unlikely” since a deal would require further cooperation between OPEC members amidst Iran’s growing production and ongoing rift with Saudi Arabia, Goldman Sachs said on Sunday. Furthermore, coordinated cuts would be “self-defeating” since the higher prices as a result of an announcement of cuts would bring shale oil production back into the market quickly since previously shut wells would restart at prices above $40 a barrel, the bank said. Oil prices rebounded last week from 12-year lows on indications of talks between Russian officials, Saudi Arabia and other OPEC […]<\/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-53068","post","type-post","status-publish","format-standard","hentry","category-oil-gas"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/53068","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=53068"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/53068\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=53068"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=53068"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=53068"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}