The price spike on last Friday's OPEC+ news will be short-lived due to continuing questions about the group’s ongoing compliance, increased supply in the marketplace and slowing demand from weaker global growth and sustainability initiatives.
Richard Soultanian, NUS Consulting Group's Co-President, told Rigzone:
"With no clear exit strategy, it seems that the group’s strategy is now headline and news driven. Under these circumstances, we see prices declining in the first quarter of 2020,"
"Saudi Arabia got what it wanted out of this meeting, a strong headline and a spike in price to support the Aramco offering, however the underlying market fundamentals seem little changed"