The 14-nation producer group and its allies led by Russia set out to
balance the market after oil prices plunged more than 40% at the end of
last year. To do that, they aim to keep 1.2 million barrels per day off
the market in the first six months of the year, CNBC reported.
"OPEC is pursuing a shock and awe strategy" by slashing output at the
start of their production-cutting deal, Currie said on Monday.
He noted that OPEC is throttling back output faster than Goldman
expected, while Venezuelan supply continues to tank and Russia says it
will accelerate its production cuts.
"This market is likely to be rebalanced by April," he told CNBC.
That will force OPEC to lay out its plans for lifting the production
curbs by May or June, he said. Currie believes that by telegraphing its
exit strategy, OPEC can dissuade US drillers from turning on the taps,
thereby preventing another price-crushing oil glut.
However, OPEC's "shock and awe" policy, combined with robust oil
demand, could easily push Brent crude oil back to $70 to $75 a barrel in
the near term, up from current prices in the mid-$60 range, Goldman
forecast last week.
Saudi Energy Minister Khalid al-Falih recently told CNBC he is leaning
towards extending the six-month deal into the second half of 2019.
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