OIL: S&P Survey of Refiners Suggests OPEC+ Output Cut Extension

OPEC+ is expected to extend the current crude production cuts beyond 1 April according to 55% of the eleven refining industry participants in South Korea and Japan surveyed by S&P.

• Three participants said they expect OPEC+ to conclude the output reductions at the end of March as initially planned, while two participants believed that chances are evenly 50-50.
• "Middle Eastern producers are obsessed with three-digit oil prices and current price levels are not exactly in their favor...I wouldn't be surprised at all if OPEC and its partners continue with the production cuts at least through the second quarter," a market analyst at the Korea Petroleum Association said.
• "OPEC+ will be keen to preserve the recent price rebound, bridge the gap to seasonal strength in Q3 2024, and maintain a balanced oil market in 2024," Paul Sheldon, chief geopolitical advisor for S&P Global, said.