The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksRDSB.L Share News (RDSB)

  • There is currently no data for RDSB

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Saudi, UAE spat unlikely to result in breakdown of OPEC+ discipline, Morgan Stanley says

Tue, 06th Jul 2021 13:22

(Sharecast News) - OPEC+'s failure to reach an agreement on raising production two days before is unlikely to herald the start of a price war between its members, analysts at Morgan Stanley said - but there were medium-term risks.
Yes, keeping the production quotas of the group's member countries unchanged now would restrict supply and buoy prices in the short-term, they conceded.

That was especially important because the oil market had already been undersupplied in recent months to the tune of 2.0m barrels a day and demand was expected to jump by 3.0m b/d between June and December.

Hence, global oil inventories were being depleted at a quick pace.

However, over the medium-term, the group of producer countries was sitting on top of approximately 6.2m barrels a day of spare capacity, if one included the Russian Federation but left out Iran, Morgan Stanley added.

So if the current stand-off between those countries that wanted to boost output further and those who didn't continued, that might see some of them break their quotas, eventually leading to a race to gain market share that drives prices lower.

"The question however, is whether that latter scenario is really so likely? The consequences of letting that scenario play out are not to be taken lightly. There have been prior periods where lack of agreement eventually led to a full breakdown in cooperation and sharp increases in production," they said.

"In those cases, Saudi Arabia itself has often added to significantly to supply, with the eventual aim of driving members back to the negotiating table via a period of (very) low oil prices."

Nonetheless, for Morgan Stanley the most likely scenario was one where OPEC+, including the UAE, ended up going ahead with an increase in combined OPEC+ output between August to December of 2.0m b/d, which would suffice to keep crude oil prices in a range of $75-80 a barrel.
More News
4 Oct 2021 16:09

Brent jumps as OPEC+ surprises, stands pat on output

(Sharecast News) - Crude oil futures hit seven-year highs after OPEC+ nixed talks of a supply increase at their ministerial meeting.

Read more
28 Sep 2021 11:39

Oil passes $80 per barrel for first time in three years

(Sharecast News) - Benchmark oil prices have pushed past $80 a barrel for the first time in three years, as concerns about possible shortages grow.

Read more
28 Sep 2021 10:47

Push for 'net zero' emissions could have significant impact on inflation, Capital Economics says

(Sharecast News) - The global push towards "net-zero" emissions could have significant implications for the inflation outlook depending on how quickly those changes are implemented, economists said.

Read more
21 Sep 2021 11:23

Shell agrees $9.5bn Permian Basin deal with ConocoPhillips

(Sharecast News) - Royal Dutch Shell is to exit the Permian Basin after striking a $9.5bn deal with US major ConocoPhillips.

Read more
15 Sep 2021 16:15

London close: Oil majors buoy top-flight index even as CPI spikes

(Sharecast News) - London's top-flight index outperformed on Wednesday, buoyed by gains for index heavyweights BP and Royal Dutch Shell on the back of fast-rising energy prices globally.

Read more
12 Sep 2021 13:47

Sunday newspaper round-up: Ryanair, China's central bank, IAG

(Sharecast News) - Ryanair boss Michael O'Leary has warned that airfares will be "dramatically higher" next summer as passengers rush to return to Europe for their holidays. The outspoken airline chief executive said huge demand for holidays would coincide with fewer flights, which would mean a spike in prices for holidaymakers - not just for flights, but also for hotels. - Sunday Times

Read more
7 Sep 2021 12:58

Morgan Stanley downgrades US equities to 'underweight', says growth pessimism excessive

(Sharecast News) - Equity strategists at Morgan Stanley downgraded their recommendation for US stocks ahead of the final stages of what they termed a mid-cycle transition.

Read more
23 Aug 2021 13:44

Berenberg says 'buy' energy, highlights Shell

(Sharecast News) - Strategists at Berenberg recommended clients buy energy stocks, pointing to their attractions as 'value' plays, "strong" balance sheets and surplus free cash flow to back up their thesis.

Read more
11 Aug 2021 12:56

US calls on OPEC+ to raise crude oil output further

(Sharecast News) - The Biden administration is set to call on OPEC+ to raise crude oil production further in order to lower prices at the pump.

Read more
30 Jul 2021 14:41

Berenberg on Shell stays at 'buy' on Shell after 'strong' Q2 numbers

(Sharecast News) - Analysts at Berenberg reiterated their 'buy' recommendation for shares of Royal Dutch Shell following the outfit's second quarter numbers.

Read more
30 Jul 2021 12:50

Friday broker round-up

(Sharecast News) - Royal Dutch Shell: Berenberg keeps at'buy' but raises target price from 1,570.0p to 1,720.0p.

Read more
29 Jul 2021 07:56

Shell beats on Q2 profits, announces $2.0bn share buyback

(Sharecast News) - All of Royal Dutch Shell's key financial metrics headed in the right direction over the second quarter, with the company announcing a dividend increase and share buyback programme as a result.

Read more
20 Jul 2021 17:48

JP Morgan raises year-end 2021 target for S&P 500

(Sharecast News) - Strategists at JP Morgan raised their year-end target for the S&P 500 and told clients that they did not anticipate that the Delta Covid-19 variant would derail the reopening of economies.

Read more
19 Jul 2021 13:40

Monday broker round-up

(Sharecast News) - BP: Morgan Stanley stays at 'underweight' and revises target price from 285.0p to 305.0p.

Read more
19 Jul 2021 13:25

Broker tips: Royal Dutch Shell, Travis Perkins, Fresnillo

(Sharecast News) - Analysts at Morgan Stanley reiterated their 'overweight' stance on shares of Royal Dutch Shell in anticipation of share buyback announcements and higher dividend payouts from the oil major.

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.