OPEC deal could be extended for 9 extra months – Danske Bank

Analyst at Danske Bank Mathias Mogensen expects the OPEC to extend its ongoing output cut deal for another 9 months at today’s meeting.

Key Quotes

“OPEC is set to meet today to discuss an extension of the current deal to cut output. We expect a 9M extension, which we deem to in line with market expectations”.

“Consequently, we do not expect the oil price or NOK to move significantly on the meeting. On the margin, we could see a risk that OPEC disappoints the market with a rhetoric hinting that this is the final round of cuts, which in turn would send oil prices lower and EUR/NOK slightly higher. Note there is no pre-set time for an announcement. At the latest meeting in May, the decision began to leak around 15:00 CET”.