Oil futures have lost 8 percent since the Organization of Petroleum Exporting Countries and its allies agreed on May 25 to keep output constrained through the first quarter of 2018 in a bid to clear a global glut. While Goldman Sachs Group Inc. expects their strategy to ultimately succeed, they warn the surplus may re-appear once the curbs end. Morgan Stanley and JPMorgan Chase & Co. say the group will have little choice but to stick with the cuts even longer. “If OPEC wants to keep the market balanced next year, they will probably need to extend the production cut to all of 2018,” Martijn Rats, managing director at Morgan Stanley in London, said by email. “Demand growth has slowed somewhat recently, and with U.S. production growing strongly, there doesn’t seem to be much room for OPEC production to grow in 2018.” Click Read More below for additional detail.
Oil futures were under pressure Monday, pulling back from five-month highs notched last week, after Russia’s finance minister said his country and OPEC may decide to boost output to fight for market share with the U.S.
“There is a dilemma. What should we do with OPEC: should we lose the market, which is being occupied by the Americans, or quit the deal?” Russian Finance Minister Anton Siluanov was quoted as saying Saturday by the TASS news agency, according to Reuters. Siluanov said such a move could drive the price of oil to $40 a barrel or below, the report said.
more at source:https://www.marketwatch.com/story/oil-retreats-from-5-month-high-as-russian-official-talks-of-potential-bid-for-greater-crude-share-2019-04-15