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OPEC+ Oil Output Curs to Tighten Summer Balance: Macquarie

OIL

OPEC+’s decision to toll over oil production cuts of 2.2m b/d into Q3 could worsen a possible very tight summer balance, according to Macquarie Group, cited by Bloomberg.

  • Macquarie expects summer supplies to be tight but does not foresee a large deficit in oil due to poor compliance among some OPEC+ members.
  • The roadmap for easing cuts from Oct. 2024-Sep. 2025 is challenging amid ongoing non-OPEC supply growth from the likes of Guyana and the USA.
  • “Perhaps it is best to take OPEC+/Saudi Arabia seriously but not literally, with respect to the timing and implementation of this return of supply,” Macquarie said, cited by Bloomberg.

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