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Sub-$70/bbl Brent Prompts OPEC+ Cut Chances

OIL

A drop below $70/bbl for Brent would create a 60-70% likelihood of production cuts by some OPEC+ members according to Citi bank in a research note.

  • Core OPEC members including Saudi Arabia may remind the world that their domestic demand started increasing in June and that is likely to tighten exports, the bank said.
  • It added that Russia may not be the one to cut if Brent drops below $70/bbl.
  • It said that global balances this year depend on OPEC+ cuts, whether the northern hemisphere has normal gasoline demand this summer and what summer weather is like.

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