Following OPEC’s decision to cut production for the first time in eight years, Sam Wahab, Director of Oil and Gas Research at Cantor Fitzgerald Europe, gave his views on the outlook for the oil price as we head into 2017:
“Yesterday’s agreement has truly changed the landscape for oil over the coming years, putting a floor of US$50 a barrel under oil prices.
“Prior to this agreement, the environment of sub US$50 oil was likely to persist, but this move sufficiently addresses the supply/demand dynamics, with some 3.5% of supply being cut from January.
“It means 2017 will likely see prices around the US$55 - 60 a barrel mark, and we may yet see further jumps in prices as soon as next week if the non-OPEC members also agree a production cut at their meeting on 9 December.”
Read the article online at: https://www.hydrocarbonengineering.com/refining/02122016/cantor-fitzgerald-reacts-to-opec-news/