Here’s what leading analysts have to say about the kingdom’s move to go it alone with a 1 million barrel-a-day reduction.
Saudi Arabia pledged an additional production cut in July to stabilize the oil market, ceding ground to two of its key allies — Russia and the United Arab Emirates — which made no commitment to curb further.
Here’s what leading analysts have to say about the kingdom’s move to go it alone with a 1 million barrel-a-day reduction:
The cut may support prices in the short term, but the broad market dynamics for the rest of 2023 and into 2024 remain practically unchanged, analysts including Martijn Rats and Charlotte Firkins wrote in a note. It’s the third OPEC cut in nine months and likely to be the last this year, provided there are no major changes in the supply and demand outlook, they added.
Goldman Sachs Group Inc.
The OPEC+ meeting was moderately bullish and offset some bearish downside risk to the bank’s December forecast of $95 a barrel, said analysts including Daan Struyven and Callum Bruce. The Saudi energy minister’s “whatever is necessary” comment signals a commitment to continue to lean against the shorts and leverage its unusually high pricing power, they said.