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OPEC+ May Extend, Deepen Oil Cuts In 2024: Citi

OIL

OPEC+ may be forced to once again extend or deepen cuts in 2024 as supply balances remain elevated, Citi analysts including Ed Morse said in a note.

  • Global demand in 2024 is likely to decelerate due to weak economic growth while supplies remain elevated, Morse said.
  • Inventories in the Atlantic Basin and “Fragile Five” nations will continue to rise into next year, he added.
  • Latest numbers from the S&P Commodity Insights survey suggested OPEC+ production increased by 120kbpd last month to 40.52mbpd, as increases from Iran, Iraq and Nigeria – part of the fragile five – more than offset Saudi Arabia’s and Russia’s production cuts.
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OPEC+ may be forced to once again extend or deepen cuts in 2024 as supply balances remain elevated, Citi analysts including Ed Morse said in a note.

  • Global demand in 2024 is likely to decelerate due to weak economic growth while supplies remain elevated, Morse said.
  • Inventories in the Atlantic Basin and “Fragile Five” nations will continue to rise into next year, he added.
  • Latest numbers from the S&P Commodity Insights survey suggested OPEC+ production increased by 120kbpd last month to 40.52mbpd, as increases from Iran, Iraq and Nigeria – part of the fragile five – more than offset Saudi Arabia’s and Russia’s production cuts.