Alain Bokobza, head of global asset allocation at Societe Generale, told CNBC’s Squawk Box that OPEC was likely to be forced to cut production next year as low oil prices were hitting producing economies.
“We’ve seen OPEC not cutting when OPEC is bleeding currently” said Bokobza.
With Saudi Arabia’s budget deficit at 22 percent of the GDP, the oil behemoth can’t hold out that much longer, he added.
“At some stage they need to agree with some big OPEC producers, [and] that means Iran [to cut production], and they will come to the market sooner rather than later [to cut] production. That day, better not be short oil.”
via CNBC
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.