November 07, 2023 08:42 GMT
Saudi Arabia and Russia Likely to Extend Output Cuts: UBS
Saudi Arabia and Russia are next month likely to extend the oil output cuts according to UBS.
- “With oil demand seasonally weakening at the first quarter of every year, and with OPEC+’s desire to keep the oil market in balance, we think these cuts are likely to be extended next month,” said Giovanni Staunovo at UBS.
- “We continue to expect Brent oil to move back into a $90–100/bbl range, supported by lower oil inventories.”
- Saudi and Russia on Sunday reaffirmed commitment to their current voluntary oil supply cut levels until the end of the year in near joint announcements.
- As part of the commitments Saudi has reduced crude production by 1mbpd and Russia has curbed exports by 300kbpd, on top of earlier cuts made with OPEC+ nations.