Oil: Saudi Arabia will extend its production cuts into 2024 if they want prices to remain above $80 – ANZ - FXStreet
Oil: Saudi Arabia will extend its production cuts into 2024 if they want prices to remain above $80 - ANZ
Oil prices are likely to settle around $80/bbl, strategists at ANZ Bank report.
Saudi Arabia may extend cuts as Oil market tightness eases
Tightness in the Oil market has eased as growth in non-OPEC supply has more than offset strong demand. A balanced Oil market now remains reliant on production cuts being maintained well into 2024.
If Saudi Arabia were to reverse its unilateral production cuts, the market would suddenly be awash with Oil and prices would likely drop below $70/bbl. However, any supply disruptions in the Middle East could see them above $100/bbl.
On the balance of risks, we think Saudi Arabia will extend its production cuts into 2024 if they want prices to remain above $80/bbl.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
Recommended content
Editors’ Picks
EUR/USD holds to daily gains above 1.0850
EUR/USD is up on Friday, trading near the 1.0900 area. The US Dollar received support during the American session from higher Treasury yields and mixed market sentiment. The pair is on its way to the highest weekly close since August.
EUR/USD News
GBP/USD consolidates weekly gains below 1.2450
The rebound of the Pound from 1.2375 encountered resistance below 1.2450. GBP/USD is consolidating around 1.2430 as the DXY stabilizes helped by higher Treasury yields. The pair has gained almost 200 pips from its level a week ago.
GBP/USD News
Gold could face stiff resistance at $1,992 en-route $2,000
Gold price is building on the previous upsurge, testing an eight-day high near $1,990. Increased bets of Fed pause keep US Treasury bond yields undermined, Gold price buoyed.
Gold News
ETF delay and weekly swing failure could crash BTC to $30,000
After the US Securities and Exchange Commission (SEC) announced a delay in their ETF decision, Bitcoin (BTC) price saw a quick uptick, which did not make sense.
Read more
Key events in developed markets next week
All eyes will be on the 21 November FOMC minutes next week, although they're unlikely to be especially market-moving. In the eurozone, we don't expect any pickup in PMI data.
Read more
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”