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Oil prices – both WTI and Brent- are trading higher on Thursday, ahead of today’s meeting of the Organization of the Petroleum Exporting Countries (OPEC).
“Although yesterday there was talk that Saudi Arabia was pressuring its partners to implement a new cut of 1 million barrels per day in the group’s production quotas, the most likely outcome is that the current cuts will be extended through the first quarter of 2024, including voluntary cuts by Saudi Arabia and Russia,” explained Link Securities.
“The reaction of crude oil prices will give us an idea of how the market takes the outcome of the aforementioned meeting”, add these analysts.
“We will see if Saudi Arabia is able to get support in the reduction of crude oil supply in order to stabilise prices (-15% from 98 dollars per barrel at the end of September and despite the rebound of +8% from the lows of 76 dollars in mid-November)”, agree Renta 4.
“Saudi Arabia could extend its cuts of 1 million barrels a day beyond December. However, there are members that are reluctant to cut their quotas, among them Iraq, Russia and Kazakhstan, while some African countries cannot reduce further because of all the capacity already lost. For its part, the United Arab Emirates may not increase the +200,000 b/d authorised from January 2024,” the manager concludes.
