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OPEC+ delay won’t prevent oil price falls

The decision by OPEC+ to delay unwinding some of its oil production cuts until April 2025 appears to have provided food for thought to both oil bulls and bears. However, although the announced plans are all else equal consistent with a tightening in the oil market balance next year, we are sticking to our below-consensus view for Brent crude prices to fall to $70pb and $60pb by end-25 and end-26 respectively.

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