(MENAFN) Analysts are questioning whether the Organization of Petroleum Exporting Countries (Opec)-led production cuts will last until the end of the year, as oil trades near a three-year high and crude stockpiles fall rapidly.
There are growing expectations that the deal will be phased out early, as the producer group is set for a meeting with its partners to review strategy in Muscat, Oman, this weekend, reported Bloomberg.
"If Brent is still trading around USD60 a barrel and oil inventories are close enough to Opec's five-year average," the deal may be phased out informally by nations gradually weakening their compliance with production cuts, Tchilinguirian, BNP Paribas SA's head of commodity strategy said.
While other analysts predict a more formalized unwinding of the cuts, Energy Aspects Ltd.'s chief oil analyst Amrita Sen said that it would be "prudent" to expect Opec members will start cheating given higher oil prices.
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