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Deutsche Bank Sees Oil Dropping Even If OPEC+ Postpones Hike

Oil could drop below $60 a barrel in New York next year, with a “material rise” in supply surpluses even as OPEC+ is likely to delay a planned production increases until April, according to Deutsche Bank.

“It would be misguided to think of an OPEC pause on Thursday as bullish, since we have assumed that in our model and still end up with a surplus in Q1,” analysts including Michael Hsueh wrote in a note Tuesday. “We would be sellers of a rally in crude on the back of an OPEC pause.”