A gradual fall in oil prices over the coming years could prompt Saudi Arabia and OPEC to reclaim some of its market share from the U.S., according to the head of EMEA oil and gas research at J.P. Morgan.
Saudi Arabia and OPEC are “there to support oil while they are effectively pregnant with all this economic growth and capital they have got to deliver. But, having said that, what we are saying to the bulls is: Don’t get used to it,” J.P. Morgan’s Christyan Malek told CNBC’s “Squawk Box Europe” on Thursday.
Earlier this week, OPEC and 10 other allied producing partners agreed to keep 1.2 million barrels a day off the market for another nine months.
The energy alliance, sometimes referred to as OPEC+, has been reducing output since 2017 as part of a sustained bid to prop up crude prices.
The Middle East-dominated group has succeeded in keeping crude futures near $60 a barrel, albeit five years after oil prices last traded above $100. But, a protracted period of production cuts has seen…