Special Market Report
The Search for Balance: Is the OPEC+ Supply Response Enough?
The record production cuts announced by OPEC+ earlier this month are expected to take effect May 1 and extend in some capacity into 2022. In the U.S. and Canada, the expectation for market dictated production cuts has already started by way of shut-ins. Ultimately, faced with the unprecedented near-term demand shock, the current supply response will be insufficient to balance markets and support prices near-term, but they have the potential to accelerate price recovery on the backside of the COVID-19 pandemic.
Report Highlights
- OPEC+ production cut detailed
- Effectiveness of OPEC+ cuts on balancing crude markets
- Updated scenarios highlighting Sproule’s view of the near-to-medium term supply-demand balance
- Updated WTI pricing scenarios and forecast
