Derik Andreoli writes that between the recent agreement by OPEC to cut oil production by 1.16 million barrels per day (bpd) and the unprecedented agreement by a group of non-OPEC countries to cut an additional 560,000 barrels per day, the world oil market could soon face a contraction in oil production on the order of 1.72 million barrels per day.
Such a cut could cause oil prices to skyrocket—at least that’s what some prognosticate. Mr. Andreoli holds a contrarian view, contending that oil prices will most likely continue to average between $50 and $60 per barrel.
Mercator has advised Port Authorities on crude oil and refined product markets, analyzed and forecasted hydrocarbon trade volumes, and conducted market feasibility studies.
