“Even if the Opec announcement does not change the mechanics of our production outlook, it does send an important signal,” analysts including Martijn Rats and Charlotte Firkins said in the note. “With Opec involvement, volatility is reduced.”
There is also a “substantial gap opening up” between Opec quotas and production, Morgan Stanley said. The bank’s estimates show a 500,000 barrel-a-day increase in the group’s output in the March to October period, far below the announced 2.6 million barrels a day of quota hikes.
Brent rose to trade near US$65 a barrel on Monday. Prices have slid 13% this year, on signs that an anticipated oversupply is starting to emerge. The glut should even out in the second half of 2027, and see prices rise back to US$65 during this time, Morgan Stanley said.
Uploaded by Liza Shireen Koshy
