The Australian bank sees OPEC extending oil output cuts for another 6 months as it is unlikely that global oil inventories will be back at their long-term average by the time OPEC meets on May 25. “Consequently, if they don’t extend the production cut agreement, the risks of prices falling even further are too large,” it said on Friday note. The bank says rebalancing in the global oil market is still “on track” and production constraints from producers and robust demand are likely to accelerate in coming months. While a rise in Saudi Arabia’s output in February raised concerns about compliance, OPEC continues to exceed targets set in the production cut deal, ANZ said.
The Australian bank
