Fitch says OPEC oil deal likely to result in much quicker market rebalancing

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    US ratings agency Fitch out with their post-OPEC meeting thoughts 1 Dec

    • OPEC deal has not changed our view on long-term oil price which we believe are more driven by marginal cost of supply
    • OPEC commitment alone could end market over supply and should result in a gradual decrease in OECD oil stocks
    • significant risk remains that OPEC members will produce crude above quotas, as has happened in the past

    That's the key area for me and helping to cap oil price rises. Agreements are made to be broken and have been before on many an occasion.

    • estimate that crude consumption may exceed production by around 400m bpd in Q1 2017 and 1.3bln bpd in Q4 2017 if OPEC deal is extended

    WTI currently  $49.92 ,Brent $52.47 both on the rise again after earlier retreat.

    The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

    This article appears in: Investing , Forex

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