Analyst: Demand Outlook Depresses Oil Prices OPEC+ Delaying Production Increase Does Not Solve Supply Glut Risks

GoldenOctober2024

2024-09-06 15:23:18

GALA-0,03%

On September 6th, analyst Rashmi Gala stated that concerns about demand prospects have suppressed oil prices, with Brent crude hitting a new low. Although OPEC+ decided to postpone the increase in supply by two months, easing the risk of oversupply in the fourth quarter, it has pushed the problem to 2025, as the organization still plans to lift the 2.2 million barrels per day production cut between December 2024 and November 2025. OPEC+ continues to support other sources of oil supply based on price rather than market share, which is reducing the room for implementing production cuts without causing a big dump in oil prices. The expected bottom of $70 for Brent crude may face risks.

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