Bank of America analysts are projecting lower Brent crude next year:
- average US$61 / bbl through 2025
Analysts say OPEC + countries want higher prices:
- fiscal budget deficits emerging across OPEC economies amid lower prices
But this is encouraging some members to break with the agreed production limits. Add in the US and other non-OPEC producers keep pumping:
- Bloomberg (citing IEA data) say output from the US, Brazil, Guyana, Canada, Argentina is expected to increase by around 36%
BofA say that only growth in demand will provide comfort to OPEC:
- "OPEC is stuck in a difficult situation where weakening oil fundamentals make it hard for OPEC+ to maintain higher oil prices."
IEA says that growth in demand, though, will not absorb oversupply.
