Crude oil prices are expected to plunge to $40 a barrel in 2020 unless OPEC and Russia agree to deepen – and not just extend – their production cuts, according to a new report from the Norwegian research firm Rystad Energy.
Source: Houston Chronicle
The Organization of the Petroleum Exporting Countries and their allies, led by Russia, are meeting Thursday and Friday in Vienna to consider either extending or deepening current production cuts that are designed to keep the global oil markets and crude prices steady. The other option is that the so-called OPEC+ group could opt to punt on a decision until next year before the existing agreement expires after March.
But Rystad warns that simply extending the existing cuts isn’t enough as the global oil demand growth slows and crude output rises in countries, including the United States, Norway, Brazil, Guyana and others.
