Brent crude will need to work through oversupply issues despite the OPEC+ output cut, says analyst

The alliance cut production by 9.7 million barrels per day at the start of May 1, and the cuts — which have helped push up crude prices in the last two months — was initially set to decline on July 1.

"We definitely need to drain that before we can see prices move materially above that kind of price structure," Payne said. Commenting on the recent OPEC+ agreement, JPMorgan's Head of Asia Pacific Commodities Research, Scott Darling, said: "I'd take some positives out of this — you've got compliance."

Oil prices have seen a partial recovery since seeing a plunge in April due to several concerns — ranging from uncertainty over demand due to the coronavirus pandemic that was spreading rapidly, to issues with crude oversupply.

Energy Energy Latest News, Energy Energy Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

OPEC, allied nations extend nearly 10M barrel cut by a monthDUBAI, United Arab Emirates (AP) — OPEC and allied nations agreed Saturday to extend a production cut of nearly 10 million barrels of oil a day through the end of July, hoping to boost energy... Thank you Mr President. Hey, thanks. Thanks a lot. For the Common good they say, cutting daily production to boost oil prices will definitely become everyone's best interests.
Source: AP - 🏆 728. / 51 Read more »