Speculation Grows That OPEC Will End Cuts Early as Prices Rise
- BNP, UBS and Citigroup predict deal phase-out in second half
- OPEC ministers say they’ll see accord through to end of year
OPEC Raises Supply Outlook for U.S. Oil
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As oil trades near a three-year high and crude stockpiles fall rapidly, analysts are questioning whether the OPEC-led production cuts will last until the end of the year. As the producer group gears up for a meeting with its partners to review strategy in Muscat, Oman, this weekend, there are growing expectations that the deal will be phased out early.
The "probability is growing" that the accord may conclude before the end of the year, said Harry Tchilinguirian, BNP Paribas SA’s head of commodity strategy. Discussions around an early exit are likely to emerge at the next OPEC meeting in June, he said.