Expect OPEC oil production cuts to continue in 2020: Wood Mackenzie

OPEC is likely to continue with its oil supply cuts for the rest of 2020, a research director said Monday.

“One thing which we are seeing in our numbers is that the market is still not ready to absorb the production cuts back, even for (the) whole of this year,” Sushant Gupta, who heads Wood Mackenzie’s refining and oils market team in Asia, told CNBC’s “Capital Connection.”

“We expect OPEC to continue cutting production for 2020,” he said.

OPEC and its allies agreed in December 2019 to cut supply by an additional 500,000 barrels per day until its next meeting in March 2020, bringing the total reduction to 1.7 million barrels a day.

However, the duration of the deal remains uncertain. The…