The CEO of commodities trader Mercuria Energy Group, Marco Dunand, suggested that OPEC might need to consider further production cuts to maintain current oil prices, given challenges such as stuttering demand growth and high U.S. output. Despite previous underestimations of U.S. oil production growth, Dunand anticipates a potential slowdown due to industry consolidation and cost reduction. He highlights the impact of slowing Chinese and global demand growth on the effectiveness of high U.S. oil production. With China's economy growing less than expected and global demand projections slowing, OPEC may need to demonstrate strong compliance with supply curbs and potentially implement additional cuts to stabilize prices.

SOURCE:HELLENIC SHIPPING NEWS