Brent crude prices to stay low if OPEC doesn’t cut production: JP Morgan

Brent crude prices might struggle to rise if the Organization of the Petroleum Exporting Countries (OPEC) does not follow its commitment to reduce oil production throughout 2019, CNBC reported, citing JP Morgan’s head of Asia Pacific oil and gas, Scott Darling.

“....if OPEC didn’t really cut by more than around 1.2 million barrels per day, and they did just for the first half, (not) for the full year, that we could gravitate towards ... our low-oil-price scenario, which is $55 Brent for 2019,” Darling said.

In December 2018, OPEC and non-OPEC countries agreed to take about 1.2 million barrels a day off the oil market — initially for six months — starting January 2019.

“The sluggish demand for crude and the uncertainty over full compliance from OPEC are factors that could keep oil prices weak in 2019,” he added.

Darling also indicated that geopolitical risks in places such as Venezuela could also push oil prices up.