JP Morgan said in a research note that the worsening outlook for global oil demand would spur OPEC to backtrack on a planned easing of oil production cuts in 2021 with an offer
Saudi Arabia to make greater cuts without its current production quota.
Saudi Arabia to make greater cuts without its current production quota.
Analysts including Christian Malik said in a note, “In the face of investor sentiment, which tends to be relatively weak in the prospects for demand in the near term, as potential cases of Covid-19 accelerate with the approaching winter, we highlight the possibility that Saudi Arabia will lead additional cuts at the OPEC meeting scheduled for … November 30. ”
“The basic case is a reversal of a 1.9 million barrels per day increase in production scheduled for 2021, with an upward perception whereby Saudi Arabia shrinks its own share even to a lower level (in case demand expectations deteriorate),” JP Morgan said.
