As oil prices approach $70 a barrel, Rystad Energy expects that a short-lived price rally through the first half of 2020 will then lose momentum and be replaced by a need for additional production cuts by Russia and the cartel of oil producing countries, OPEC. “We retain our bullish stance for the second half of 2019 and first half of 2020 as we anticipate OPEC+ to extend production cuts through 2019, while we also expect bullish oil market effects due to the introduction of IMO 2020 regulations on sulfur content in marine fuels,” says Bjørnar Tonhaugen, Head of Oil Market Research at Rystad Energy. He added: “However, the effects of the IMO 2020 ‘scramble’ will likely be short-lived. By 2021 there will be renewed pressure on Saudi Arabia and OPEC+ to cut production again, or risk a new down-cycle in oil prices.” Rystad Energy sees that US shale production […]