Expert View | OPEC to extend supply curbs till 2H; Crude oil seen at $70-$90 in 2024: Kotak's Kaynat Chainwala

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is working on a complex deal to be agreed on Sunday that will allow the group to extend some of its deep oil production cuts into 2025.Also Read: Built-in capacity to targets: Why OPEC+ members clash over oil production capacity—ExplainedThe group is currently cutting output by a total of 5.86 million barrels per day (bpd), equal to about 5.7 per cent of global demand. The cuts include 3.66 million bpd by OPEC+ members valid through to the end of 2024, and 2.2 million bpd of voluntary cuts by some members which expire at the end of June.Despite deep production cuts Brent crude prices are trading near their lowest this year at $81 per barrel, down from a peak of $91 in April, pressured by elevated stocks and concerns over the global demand growth.The Paris-based watchdog International Energy Agency (IEA) had lowered its forecast for 2024 oil demand growth, widening the gap with OPEC+ in terms of expectations for this year's global oil demand outlook.

The divide between the IEA and OPEC sends divergent signals about the oil market strength in 2024, according to analysts.The gap between the IEA and OPEC is now even wider than it was earlier this year, when an analysis by news agency Reuters found that the difference of 1.03 million barrels per day (bpd) in February was the biggest since at least 2008.Ahead of Sunday's OPEC+ policy meeting, crude oil prices dropped in the previous session and posted a weekly loss as investors awaited the verdict. Brent futures for July delivery settled lower at $81.62 a barrel, while the US West Texas Intermediate (WTI) crude futures fell 1.2 per cent at $76.99.Also Read: IEA vs OPEC: IEA widens gap with OPEC on crude oil demand projections for 2024; June policy decision eyedSeveral