What next for OPEC+ after its fractious, face-saving agreement? The MUFG Global Markets Podcast

The dizzying risk-on momentum in November stemming from the euphoria over vaccines was pricing in future hope, but not the immediate realities of a worsening virus surge on both sides of the Atlantic, which adds uncertainty to short-term oil demand. This, in conjunction with sustained higher crude prices – and a rosier outlook for the global economy next year – put OPEC+ in difficult position in confronting its dynamic role in balancing oil markets as it met this week.

Ehsan Khoman, Head of MENA Research and Strategy, believes that the divergence amongst OPEC+ members does not bode well for collective unity in 2021, and the sustainability of the group’s strategy of supporting prices (over defending market share) will be bought into question in the months ahead.

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