OPEC to agree a cut in production in early 1Q2015
Baku, Azerbaijan, Dec. 9
By Aygun Badalova - Trend:
OPEC will agree to cut production in early first quarter of 2015, analysts of the US JP Morgan bank believes.
"Lower prices will provide the necessary catalyst to allow OPEC members to set aside their differences and reach an agreement," analysts said in a report obtained by Trend.
JP Morgan analysts remain of the view that the initial failure of OPEC to agree how to rebalance markets is not in itself evidence that OPEC is either targeting shale producers nor is it final proof that OPEC has become an irrelevancy.
At the same time, analysts believe that given time lags inherent in organising the allocation of volumes from OPEC producers, cuts are assumed to be implemented over latter part of the first quarter of 2015 and more fully in the second quarter of 2015.
Analysts forecast Brent price at $75 per barrel in the first quarter of 2015 with average prices of $70, $75 and $80 per barrel in January, February and March respectively.
Thuesday morning Brent futures decreased by 5.48 percent to $65.48 per barrel.
Price for WTI downed by 5.46 percent to $62.43 per barrel.
During the last meeting on November 27 OPEC member countries decided to maintain oil production quota at 30 million barrels per day.
Aygun Badalova is Trend Agency's staff journalist, follow her on Twitter: @AygunBadalova