No 'Super Spike' In Oil Price Expected, Analyst Says After OPEC+ Cut: 'Validation Of Weak Market Conditions'
Portfolio Pulse from Shanthi Rexaline
OPEC+ announced a limit on combined oil production to 40.463 million barrels per day in 2024, with voluntary cuts extended to 2024. Saudi Arabia will implement an additional 1 million barrel per day cut starting July. KeyBanc analyst Tim Rezvan sees this as bullish for oil prices but not a precursor to a super-spike.
June 05, 2023 | 7:26 am
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OPEC+ production limit and Saudi Arabia's additional cut are bullish for oil prices, but not a precursor to a super-spike, according to KeyBanc analyst Tim Rezvan.
The OPEC+ production limit and Saudi Arabia's additional cut will likely lead to higher oil prices, which will positively impact the United States Oil Fund (USO). However, the analyst does not expect a super-spike in oil prices, which may limit the upside potential for USO.
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