OPEC Meeting Won't Result in Production Freeze, Cut

OPEC Meeting Won't Result in Production Freeze, Cut
OPEC's informal September meeting in Algeria won't result in a production freeze or a production cut, says global investment banking firm Jefferies.

OPEC’s informal September meeting in Algeria won’t result in a production freeze or a production cut, says global investment banking firm Jefferies.

“We could of course be wrong; it is possible that OPEC could announce some form of production freeze. However, the effects on the physical market would appear to be minimal,” said oil and gas analysts at Jefferies in a brief research note sent to Rigzone.

Freeze or no freeze, Jefferies said that it expects commercial inventories to begin to draw in the fourth quarter as supply and demand re-balance, setting the stage for a price recovery.

“We forecast a Brent oil price of $58 per barrel in 2017…and $72 per barrel in 2018,” stated Jefferies analysts.

Furthermore, Jefferies believes that the timing of the meeting could in and of itself keep prices supported until the market nears balance in 4Q.

The Organization of the Petroleum Exporting Countries (OPEC) has scheduled a meeting during Sept. 26 through to Sept. 28 in Algiers during the 15th International Energy Forum. 

A graduate in journalism from Cardiff University, Andreas has eight years of experience as a business journalist. Email Andreas at andreas.exarheas@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Andreas Exarheas
Assistant European Editor | Rigzone
 -  Analysts: OPEC Production Freeze Never... (Sep 22)
 -  Norway Services Strike Affects Schlumb... (Sep 21)
 -  Aker Solutions to Temporarily Cut 100 ... (Sep 20)
 -  Tethys Increases Oil Production in Oma... (Sep 19)
 -  Statoil Deals With Aasgard B Platform ... (Sep 19)


Most Popular Articles

From the Career Center
Jobs that may interest you
Project Cost Controls Specialist
Expertise: Cost Engineer|Project Controls
Location: 52723
 
Logistics Coordinator
Expertise: Budget / Cost Control|Estimating|Supply Chain Management
Location: Tupman, CA
 
Accounts Payable Manager
Expertise: Accounting|Financial Analyst|Payroll
Location: KCMO, MO
 
search for more jobs

Brent Crude Oil : $45.89/BBL 3.69%
Light Crude Oil : $44.48/BBL 3.97%
Natural Gas : $2.96/MMBtu 1.00%
Updated in last 24 hours