WoodMac Says OPEC+ Will Continue Cuts
OPEC+ will continue production restraint through the second half of 2019, rolling over the current agreement.
That’s what Wood Mackenzie (WoodMac) expects, according to Ann-Louise Hittle, vice president of macro oils at the company.
OPEC+ is meeting in Vienna, Austria, for a series of talks over the next couple of days after their original meeting dates on June 25 and 26 were rescheduled. A joint ministerial monitoring committee meeting between OPEC and non-OPEC has already begun.
Bloomberg reported on Monday that Saudi Arabia and Russia have signaled support for an extension of OPEC+ output cuts. In a video interview posted on Bloomberg’s website today, U.A.E. Energy Minister Suhail Al Mazrouei said, “I’m for an extension – I think that is needed”.
Last week, a Fitch Solutions Macro Research (FSMR) report revealed that FSMR analysts believe OPEC+ will agree to extend production cuts for at least another six months to 2020. Earlier in June, Jason Gammel, an equity analyst at investment bank Jefferies, expressed in a research note sent to Rigzone that an OPEC+ extension of production targets through the rest of the year seems “highly likely”.
Back in December last year, OPEC+ agreed on a production cut of 1.2 million barrels per day.
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