November 27, 2024 18:24 GMT
OIL: OPEC+ Faces Tough Production Call: Platts
OIL
With crude prices still stuck in the low to mid-$70/b level, OPEC+ are faced with a third delay to their gradual unwinding of 2.2m b/d of voluntary cuts when they convene Dec. 1, Platt said.
- However, how long the OPEC+ alliance will be willing to hold firm on its production levels as its market share erodes remains a major question hanging over prices.
- HSBC said a three-month extension, would allow the group to avoid a potentially large surplus during the seasonally weak first quarter,"
- "If prices go above $80/b, that would increase the chances of a production increase, which could make the $80/b range a de facto price ceiling for a time," Platts analysts said.
- Whatever policy OPEC+ chooses to pursue, it faces major challenges in curbing output, Platts said.
- Iraq, Kazakhstan, and Russian, which overproduced their quotas in 2024, still owe so-called compensation cuts to account for excess volumes.
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