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Wednesday, 12 July 2017

Contrarian Who Predicted OPEC's Woes Says Group Should End Cuts - Bloomberg

Contrarian Who Predicted OPEC's Woes Says Group Should End Cuts - Bloomberg:

"When OPEC and its allies unveiled their plan last year to re-balance world oil markets, prices rallied and most analysts expected the supply cuts would succeed. With the strategy now faltering, one bank that predicted failure says the group should call it quits. There’s been a wave of price-forecast downgrades over the past month as analysts from Goldman Sachs Group Inc. to Bank of America Corp. and Citigroup Inc. acknowledged that OPEC’s production curbs haven’t cleared a global glut. One forecaster who’s kept his outlook unchanged is Commerzbank AG’s Frankfurt-based head of commodities research Eugen Weinberg, who never believed the cuts would work in the first place. “OPEC’s strategy was doomed from the very beginning,” Weinberg said. “It’s all about shale and the sooner they recognize that the better.” "



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