Common Contracts
1 similar null contracts
Deep into a complex geopolitical backdrop, this agreement has not defined precise individual quotas. However, 800 Kbbl/d will correspond to OPEC countries (-2.5%) and 400 Kbbl/d to the rest (-2.0%). Moreover, exemptions will remain for Iran,...December 7th, 2018
A quite difficult meeting between oil producing nations has resulted in oil prices rallying more than 4.5% this Friday, as OPEC and allied countries leaded by Russia have agreed on a collective 1.2 Mbbl/d output cut. The supply agreement is scarce in details, although October levels have been established as the baseline for a 2.5% cut for every OPEC member and a 2.0% decrease for the remainder, leaving an aggregate cut of 800 Kbbl/d for the former, and 400 Kbbl/d for the latter. The decision is a result of a market acknowledging wider balances, mainly in the aftermath of unexpected waivers granted to some Iranian crude buyers. The agreement is set for an initial period of six months, with a reviewed during OPEC’s next meeting on April 2019. In our view, and conceding the agreement’s honoring, Brent will average 70 $/bbl during 2019, and the futures curve will shift again to backwardation.
