JP Morgan says that the oil cartel will need to deepen output cuts by another 0.7 mil bpd in the second-half of the year, in addition to the announced reductions. That cut will need to be extended into 2024 in order to offset both non-OPEC supply growth and rising output from some non-core OPEC members itself.
Oil has enjoyed a solid bounce at the end of last week but WTI crude is running into key resistance at its 100-day moving average at $73.53 and that is limiting gains for the time being.