0739 GMT - Brent crude could dip below $50 a barrel by the end of the year if OPEC+ continues to accelerate production hikes, DNB Markets analysts say. The cartel and its allies could implement larger supply increases in July, August, September and October as well if compliance among member states doesn't improve, according to a Reuters report citing unnamed sources. "However, oil prices are required to drop below the long term marginal cost of supply when OPEC+ is quickly returning production capacity to the market," DNB analysts say. "The lower oil price will help re-balancing the oil market, and gradually remove the OPEC induced oversupply, by reducing non-OPEC supply and stimulating oil demand." The long-term marginal cost of supply refers to the price level needed to justify investment in new production capacity, particularly from higher-cost producers. (giulia.petroni@wsj.com)
(END) Dow Jones Newswires
May 05, 2025 03:39 ET (07:39 GMT)
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