Bloomberg repot on analysis via GS on oil markets.
Say the OPEC+ production cuts face difficulty in H2 2019
- Current demand growth “neither will support exiting the production agreement, nor is bad enough to reinforce more cuts”
- uncertainty over Iranian exports
- growing U.S. shale output
- it “becomes increasingly difficult to know what production levels will balance the market”
- A weakening in consumption may require the group to extend cuts, a task which Russia may not be ready to sign up to. “It’s much easier to unify a position, when there is a supply disruption or a strong demand, then both Russia and Saudi Arabia want to grow production”
Any excuse for some HH will do …