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OPEC+ restores production, constrains price drop — S&P

The alliance may bring back about 2 mln bpd more to the market if such volume corresponds to the global demand, analyst Dave Ernsberger said

DUBAI, October 6. /TASS/. The OPEC+ strategy of the oil return to the global market demonstrates high efficiency and makes it possible to restrain the price dip more successfully than analysts forecast, Dave Ernsberger, the co-chairman of S&P Global Commodity Insights, told TASS in an interview.

"I think that the goal of OPEC plus is to bring production back to market without the price falling too aggressively," the analyst noted. "I think that's the goal and if that's the goal, then OPEC+, so far, has been very successful, much more successful than analysts would have expected, and much more successful than maybe the market expected, actually. And what I mean by that is a lot of production came back in September and October, and the price is still $65 a barrel, which is really quite extraordinary," Ernsberger stressed.

The alliance may bring back about 2 mln barrels per day more to the market if such volume corresponds to the global demand, the analyst said. "I think in the end, the market will rebalance itself, even if OPEC+ wants to bring back even more oil, but the marginal price of crude oil might fall to closer to $60 a barrel, or maybe even below $60 a barrel next year as a result," he added.