OPEC+ Won’t Bring Back Oil Production This Year, Rystad Says
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OPEC and its allies aren’t likely to bring oil output back this year because producers are “making huge money” from refined products, according to Rystad Energy.
“Our view is that they will continue to cut the barrels and keep the present market short,” Mukesh Sahdev, Rystad’s head of oil trading and downstream analysis, said at a conference in Houston. The producer group led by Saudi Arabia and Russia would like to keep global oil prices in the $75-$80 a barrel range, he added.
Currently benchmark Brent is trading near $73 a barrel.
Investors are focused on whether OPEC+ will revive production in December, a move that would help push the market closer to a supply glut in the coming year. The alliance has already delayed plans to resume output once, and traders are divided as to whether they will do so again.
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