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HSBC Forecasts Chance of Deeper OPEC+ Cuts as "Very Low"

OIL

The likelihood of OPEC+ opting for deeper cuts is “very low” given the scale of existing curbs, according to HSBC. It added there is “no space for bigger cuts” given the high level of spare capacity.

  • Analysts at the bank expect OPEC+ to confirm existing cuts until end-2024 and Saudi to prolong its 1mn bpd voluntary cut until the end of Q1 2024.
  • HSBC expects an extension of OPEC+ cuts into 2025 to avoid a return to surplus.
  • Forecasts for Brent are kept at $82.50/bbl for 2024 and $76.50/bbl from 2025 onward.

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