Posted 4/9/2024, 5:20:52 PM
Oil Price Nears $100 as OPEC+ Extends Supply Cuts, Risking High Prices Stifling Demand
- Market chatter about $100/barrel oil back as Brent crude hits $91.59, with next resistance around $95
- OPEC+ agreed to extend production cuts to "support the market", promising better compliance
- Question is how high is high enough for OPEC+ in an expected tight H2 2024 market
- While OPEC+ wants $80+/barrel, $110-$125 could be self-defeating via inflation and demand destruction
- If price inches to $100 in a tight market, OPEC+ may reverse cuts to pump more to sustain it