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Banks Increasingly Think OPEC Will End Supply Cuts as Oil Hits $70

  • Citi, JPMorgan say less intervention possible from mid-2018
  • Increase in crude prices is encouraging rival supply: analysts
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Citigroup’s Ed Morse sees oil trading in a "very wide band" in 2018.Source: Bloomberg

As oil rallies to a three-year high near $70 a barrel, the view that OPEC and its partners will end their supply cuts early is spreading.

Citigroup Inc., Societe Generale SA, and JMorgan Chase & Co. predict the coalition of oil producers may begin winding down their intervention from the middle of the year, before its scheduled conclusion in December. The producers are nearing their goal of clearing an inventory glut, and rising prices risk encouraging rival supply.