OPEC+’s last stand

The voluntary production cuts announced by OPEC+ this week will support oil prices in the first quarter of next year but there is clearly dissent among the ranks. We think OPEC+’s next move will be to increase production.

Elsewhere, the start of the northern hemisphere winter did little to support natural gas prices this week. Prices in the US and Europe, as well as Asia LNG prices, fell due to plentiful stocks and, in the US, strong production. In contrast, a poor outlook for production in Côte d’Ivoire sent the price of cocoa soaring. Some relief is in sight though, as production in Brazil should rise next year.

In view of the wider interest, we are also sending this Commodities Weekly Wrap to clients of the Energy Service.