OPEC+ likely to extend current oil production restrictions until Q1 2024, Citi analysts predict

Forecasts from analysts at Citi suggest that OPEC+ is likely to extend its existing oil production restrictions, with minimal alterations, until the end of Q1 2024, Report informs referring to BNN.

This development follows the current restrictions which are set to expire by the close of this year.

The predictions estimate a 60-70% possibility that oil production will maintain its current level. There’s an approximately 20% possibility of more substantial supply cuts and a 10-20% chance of a surge in production.

Over the next half to full year, Brent crude oil prices are predicted to hover around $72 per barrel.

This Thursday, Saudi Arabia, Russia, and other OPEC members are set to hold an online meeting where they may make further adjustments to an agreement that already restricts supply into 2024 in order to bolster the market. In June, after lengthy negotiations, OPEC+ extended oil output cuts of 3.66 million barrels per day (bpd), or roughly 5% of daily global demand, until the end of 2024.

In addition, Saudi Arabia committed to a 1 million-bpd voluntary reduction in output until December 2023, while a Russian cut in oil exports of 300,000 bpd will also last until the end of 2023.