OPEC + meets on November 4th and delegates indicated that the group is likely to proceed with a 400,000 b / d increase in production quota in December, in line with the schedule agreed in July. The pressure on the coalition to consider a bigger hike has grown as oil prices rise, but concerns persist within the group about the sustainability of demand against the backdrop of an economic slowdown in China and a potential new wave of Covid cases. 19.
At the end of last week, the Joint Technical Committee (JTC) of the Opec + coalition had reduced its forecast for global oil demand growth to +5.7 mbg in 2021. Our current Brent price assumption for earnings estimates 2021-23, says Equita Sim, is equal to $ 70 a barrel. The favored stocks in the sector are Eni and Galp among the integrated companies and Tenaris in the services segment.