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Industry Expects OPEC+ To Extend Production Cuts Into Q2

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Industry Expects OPEC+ To Extend Production Cuts Into Q2

(CTN News) – In a survey conducted on Friday, industry watchers and analysts predicted that OPEC+ would extend its oil production cuts into 2024.

OPEC+ is overwhelmingly expected to extend the cuts into Q2 2024 according to the anonymous survey, with 14 of the 17 traders and analysts polled predicting that no changes will be made to the production plans next quarter.

According to Bob McNally, president of consulting firm Rapidan Energy Group, “Supply exceeds demand, and OPEC+ must keep that oil off the market to maintain price stability.”

As a result, must extend the current cuts in order to avoid a meltdown, according to Tamas Varga, an analyst at PVM Oil Associates Ltd.

In addition, OPEC+ has not announced its official plans for the second quarter, and there has not yet been a date set for a discussion of those plans.

Some respondents to the survey believe that OPEC+ will extend their production cuts into the next quarter, while others believe OPEC+ may increase their cuts following some members’ overproduction in January, including Iraq and Kazakhstan.

Aside from the survey, the IEA has estimated that while global oil demand growth is slowing, the global oil markets are indeed tightening, as oil stocks fell by approximately 60 million barrels in January.

In order for markets to continue to tighten, one thing must be true, if the IEA estimates are accurate: OPEC+ must maintain its current discipline and unwind its production cuts gradually rather than all at once at the end of the first quarter.

The length of time it would take to unravel the cuts in order for oil prices not to spiral downward varies from analyst to analyst.

It appears that market conditions have tightened based on the physical markets, Energy Aspects Ltd’s director of research, Amrita Sen, told Bloomberg. It is likely that OPEC+ will extend its cuts in some form. At that point, Sen contends, the surplus will disappear.


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Alishba Waris is an independent journalist working for CTN News. She brings a wealth of experience and a keen eye for detail to her reporting. With a knack for uncovering the truth, Waris isn't afraid to ask tough questions and hold those in power accountable. Her writing is clear, concise, and cuts through the noise, delivering the facts readers need to stay informed. Waris's dedication to ethical journalism shines through in her hard-hitting yet fair coverage of important issues.

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