JPMorgan's head of energy strategy warns that the oil market is underestimating the chances of deeper supply cuts during the upcoming OPEC meeting. The market assumes very little chance of that happening, but it is much higher than that.
Deeper curbs may be necessary to get ahead of potential weakness in the first half of next year. Saudi Arabia may have more flexibility to cut production. It is more likely that they will want to socialize the cuts among their OPEC peers.
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