Oil prices have continued their downwards trajectory throughout September, with Brent settling below $85/B on 26 September for the first time since 13 January, before returning to $88/B by the end of the week. Couple this with bearish market sentiment driven by the deteriorating global economic situation and speculation is mounting that Opec+ might opt to cut when it meets on 5 October in a bid to shore up prices.
In a 28 September research note, RBC said “we certainly see a significant chance that the producer group will opt for a substantial cut (500,000 b/d to 1mn b/d) to try to signal that there is indeed an effective circuit breaker in the market.” (CONTINUED - 933 WORDS)
