JP Morgan bank expects Saudi Arabia to offer further cut in oil production | latest news

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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.

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.





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