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“This price competition will not be sudden and temporary, but rather extended and gradual,” he stated.
The analyst indicated this is because of the aim to capture market share from U.S. shale producers, who have elevated production expenses.
Previously, the eight OPEC + nations declared a third rise in output by over 400 thousand barrels daily for July. Before that, the team of volunteers restricted output to bolster prices in the market.
Saudi Arabia is likewise contending with other OPEC nations.
For over three years, they have independently maintained price support, enabling rivals to increase their production. "This has now come to an end," Blanch observed.
source: bloomerg.com
The analyst indicated this is because of the aim to capture market share from U.S. shale producers, who have elevated production expenses.
Previously, the eight OPEC + nations declared a third rise in output by over 400 thousand barrels daily for July. Before that, the team of volunteers restricted output to bolster prices in the market.
Saudi Arabia is likewise contending with other OPEC nations.
For over three years, they have independently maintained price support, enabling rivals to increase their production. "This has now come to an end," Blanch observed.
source: bloomerg.com
