Lower OPEC output won’t boost prices: Deutsche Bank

HOUSTON (Reuters) – Early indications that OPEC members are complying with the deepest ever oil-supply cuts may not stop oil prices from falling further, a top energy analyst said on Wednesday.

“It’s going to be difficult,” said Adam Sieminski, chief energy economist for Deutsche Bank.

OPEC’s previous efforts to cut output to stabilize prices have had limited effect.

“They have to cut four to five million barrels a day in quotas; they have to get a good portion of that in real, wet barrels off the market,” Sieminski said. “In a sense, OPEC is chasing the economy down.”

Reuters