OPEC, NOPEC Agreement 'Unlikely' to Emerge in November Meeting
The chances of a coordinated statement between OPEC and its non-OPEC partners on an extension of production cuts is ‘increasingly unlikely’ to come from the looming 173rd OPEC meeting, according to oil and gas analysts at investment banking firm Jefferies.
“However, a strong statement of commitment to the current policy of normalizing inventories and perhaps a timeline around an extension may be enough to satisfy the market,” analysts said in a brief research note sent to Rigzone.
“Although that is a tough call given speculative length,” they added.
At the time of writing, the price of Brent Crude was over $63 per barrel, a figure which was last hit in June 2015. OPEC’s 173rd meeting is scheduled to take place in Vienna, Austria, on November 30.
In its latest World Oil Outlook report, released November 7, OPEC revised long-term oil demand upward by 1.7 million barrels of oil per day (MMbopd), compared to WOO 2016, forecasting total demand at over 111 MMbopd by 2040.
The 2017 WOO also revealed that the group anticipates the demand for OPEC crude to expand to 41.4 MMbopd by 2040 and that oil is expected to remain the fuel with the largest share in the energy mix throughout the period.
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