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OIL: Supply/Demand Balances Not Supportive of OPEC+ Cuts: Citi

OIL

Citi analysts say their supply/demand balances see no scope for OPEC+ to reverse production cuts in 2025. 

  • Its analysts added that they see enough Permian capacity to support 2-3mbpd of liquids growth leaving OPEC+ with another 3-4 years of needing to accommodate the growth to defend prices.
  • Citi analysts said that overcapacity in the global oil markets mean there is little room for either commodity price or asset price inflation. 
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Citi analysts say their supply/demand balances see no scope for OPEC+ to reverse production cuts in 2025. 

  • Its analysts added that they see enough Permian capacity to support 2-3mbpd of liquids growth leaving OPEC+ with another 3-4 years of needing to accommodate the growth to defend prices.
  • Citi analysts said that overcapacity in the global oil markets mean there is little room for either commodity price or asset price inflation.