Fitch ratings: OPEC+ cuts tapering reflects recovering oil demand

Fitch ratings: OPEC+ cuts tapering reflects recovering oil demand
# 17 July 2020 11:00 (UTC +04:00)

The OPEC+ agreed tapering of oil production cuts from August should support a gradual market rebalancing and may help reduce price volatility, Fitch Rating says, APA reports. 

It expects OPEC+ to continue to periodically adjust the two-year deal reached in April 2020 to avoid large production surpluses or deficits. This supports their expectations of gradual oil price recovery in the medium term incorporated in our 'through-the-cycle' rating approach.

The second phase of the OPEC+ agreement, which was agreed yesterday after a one-month delay, will scale back production cuts from 9.6 million barrels a day (MMbpd) to 7.7MMbpd between August 2020 and January 2021. 

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THE OPERATION IS BEING PERFORMED