Oil prices are likely to settle around $80/bbl, strategists at ANZ Bank report.
Saudi Arabia may extend cuts as Oil market tightness eases
Tightness in the Oil market has eased as growth in non-OPEC supply has more than offset strong demand. A balanced Oil market now remains reliant on production cuts being maintained well into 2024.
If Saudi Arabia were to reverse its unilateral production cuts, the market would suddenly be awash with Oil and prices would likely drop below $70/bbl. However, any supply disruptions in the Middle East could see them above $100/bbl.
On the balance of risks, we think Saudi Arabia will extend its production cuts into 2024 if they want prices to remain above $80/bbl.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.