Citi analysts assured this Tuesday June 6 that it is unlikely that Saudi Arabia’s commitment to deepen the cuts in the production of Petroleum carry a sustainable rebound of prices in about u$90.
For analysts, weaker demandadded to a greater offer from the countries non-members of the Organization of Petroleum Producing Countries (OPEC) at the end of the year, as well as uA possible recession in the United States and Europe and a less growth in china they would drive falling prices of crude.
After knowing the newsa, oil cut its upward trend of the last days. The price of a barrel of oil Texas Intermediate (WTI) opened this Tuesday with a significant drop in 2.13% and then situate in the $71.69 per barrel. For its part, Brent futures are trading close to US$76.2 per barrel after a fall of 0.5%.
Citi’s memo on Saudi oil cut
“The likelihood of Saudi Arabia coping with this on its own on a sustained basisa is quite lowsaid Citi, which forecasts that Brent crude stays within a range, averaging $81 per barrel in 2023.
“For the million barrel cut be neutral from the point of view of Saudi Arabiait is necessary that the crude raise ten dollarssaid Ole Hansen of Saxo Bank.
For now, the main driver of the oil price Concerns about global growth and demand remainnot only in China, but also in the United States and other key consumers, Hansen added.
HSBC it also maintained its forecast for Brent at $93.5 per barrel for the second half of 2023, prpredicting that negative macroeconomic factors will offset some support from cuts.
Source: Ambito
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