(CercleFinance.com) – OPEC+ has decided to increase its production by 648 kb/d in July and August instead of the 430 kb/d initially planned.
Oddo indicates that the Galp share is the least attractive in the sector with a target of 10 E.
“This increase was partly expected and comes at a critical moment of increased demand for the summer when production in Russia has just fallen by ~1 Mb/d due to the sanctions and the boycott,” indicates Oddo.
We note the beginning of an improvement in relations with the US, and a possible visit by Biden to Saudi Arabia (the first since the beginning of his mandate). ‘Things seem to be improving, which seems to be driving this rise.’
‘This increase remains insufficient to balance the market which is likely to remain in deficit of 0.3-0.5 Mb/d’ underlines the analyst.
Oddo confirms its price scenario at $90/b this year and $75-80/b thereafter.
‘However, the current cycle may continue for another 2 to 3 years with prices at more than $100/b, but we rule out the possibility of a rebound towards $150-200/b’ adds the analysis office .
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