The US-based rating agency Fitch came out with its latest review OPEC’s decision to extend production cuts by nine months.
Key headlines (via Reuters):
- OPEC deal to cut oil inventories, but shale key long-term
- OPEC’s decision to extend production cuts by nine months should provide some support for oil prices around average year-to-date levels
- Oil production surplus could return in 2018 if deal is not rolled over again, as new projects continue to come online and us shale production is set to grow
- Says “believe average annual prices for year are likely to remain around usd50-55/bbl for Brent, given impressive U.S. Shale production growth”