OPEC+ Will Need to Maintain Oil Cuts Through 2024, Citi Says

Supply cuts need to be kept for a balanced market: Citi
Oil prices have been pressured despite supply-cut pledges

WATCH: “They can balance this market and keep prices at $70 to $80 if they all work together,” says Citigroup’s Max Layton.Source: Bloomberg

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By Grant Smith, Tom Keene, and Lisa Abramowicz

December 11, 2023 at 12:14 PM UTC

Updated on

December 11, 2023 at 1:13 PM UTC

This article is for subscribers only.

OPEC+ will need to maintain its latest oil supply cuts throughout next year in order to keep the global market in balance, according to Citigroup Inc.

The Organization of Petroleum Exporting Countries and its allies have announced that it will cut supplies by a further 900,000 barrels a day during the first quarter, and may prolong the measures if necessary. The 23-nation group led by Saudi Arabia will need to do exactly that to keep prices near current levels, the bank said.