Bank of America analysts are projecting lower Brent crude next year:
average US$61 / bbl through 2025
Analysts say OPEC + countries want higher prices:
fiscal budget deficits emerging across
OPEC economies amid lower prices
But this is encouraging some members to break
with the agreed production limits. Add in the US
and other non-OPEC producers keep pumping:
Bloomberg (citing IEA data) say output from the US, Brazil,
Guyana, Canada, Argentina is expected to increase by around 36%
BofA say that only growth in demand will provide comfort to OPEC:
“OPEC is stuck
in a difficult situation where weakening oil fundamentals make it
hard for OPEC+ to maintain higher oil prices.”
IEA says that growth in demand, though, will not absorb oversupply.
This article was written by Eamonn Sheridan at www.forexlive.com.
