Oil Rallies On OPEC 2.0 Production Cut
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The OPEC 2.0 supply cuts announced over the weekend will be fundamentally bullish international crude oil prices. According to our model, brent will cross the USD 100/bbl mark by August this year. We believe the cohort is pre-emptively cutting oil supply in response to threats to their economic interest, including risks arising from the higher possibility of recession and rising market volatility following the banking crisis.
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