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OPEC+ expected to deepen output cuts to 1.5 million bpd - JPM

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By Reuters
OPEC+ expected to deepen output cuts to 1.5 million bpd - JPM
FILE PHOTO: Saudi Energy Minister Abdulaziz Bin Salman and Russian Energy Minister Alexander Novak attend the Energy Week International Forum in Moscow, Russia October 3, 2019. REUTERS/Evgenia Novozhenina   -   Copyright  Evgenia Novozhenina(Reuters)
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By Ron Bousso

LONDON (Reuters) – OPEC and other major oil producers are expected to agree to deeper output cuts of 1.5 million barrels per day to the end of 2020 versus 1.2 million currently to help reduce a global supply overhang, JPMorgan said in a note on Tuesday.

The Organization of the Petroleum Exporting Countries (OPEC)and allies including Russia, a group known as OPEC+, meets in Vienna on Thursday and Friday.

OPEC’s de-facto leader Saudi Arabia will agree to lower its quota to 10 million bpd from 10.3 million bpd and will press other producers, particularly Iraq, Nigeria and Russia, to improve their compliance with previous commitments, JPMorgan analyst Christyan Malek wrote in the note.

Saudi Arabia is “seeking more cuts in order to ensure that oil prices are within the range of $60 to $70 a barrel which is where their oil fiscal budget break-even is,” he said.

(Reporting by Ron Bousso; editing by Jason Neely)