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.
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