Saudi Arabia and Russia push for an extension to output cuts, OPEC+ meeting this week still possible
Martijn Rats, chief oil analyst at Morgan Stanley, told CNBC's "Squawk Box Europe" on Thursday that oil supply had adjusted "very, very quickly" in order to help the market rebalance.
"We know prices can go exceedingly low in that weak situation, so from that perspective it is important that OPEC represents a relatively cohesive and united front," he continued. "Quite often, with these production agreements, if only one or two or three of the players start to deviate then it has this habit of sort of falling apart altogether. So it is important that OPEC continues to exhibit a degree of cohesion.
Saudi Arabia and Russia's reported plan would see the 9.7 million barrel a day cut extend to the end of July. The commodity pricing agency explained its forecast was based on a supply shut-ins peak, recovering demand and the assumption that OPEC+ maintains discipline at their June meeting.
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