Takeaway: Khelil does not see this level of production cuts pushing Brent oil prices higher than the mid-70s range.

REPLAY OF OPEC PREVIEW CONFERENCE CALL:

Tuesday, December 4, 2018

Speaker: Former OPEC President & Algerian Energy Minister Chakib Khelil

CLICK HERE FOR REPLAY OF CALL

Hedgeye’s held its OPEC Meeting Preview conference call Tuesday morning with former OPEC President & Algerian Energy Minister Chakib Khelil who predicted an OPEC cut of between 1 to 1.5 million b/d. Minister Khelil joined the call from Algeria and was interviewed by Joe McMonigle, Hedgeye's senior energy policy analyst, who is in Vienna to attend this week's OPEC meeting.

Khelil said he believes Russia and Saudi Arabia will come to terms and agree to contribute the bulk of the cuts. However, Khelil does not think the cut will push prices higher than a range in the mid-$70’s.

He also said it is unlikely that OPEC will reverse course and go back to the 2014 “open the taps” production decision to try to depress US shale. He said OPEC learned its lesson and won’t want to repeat an experience where shale survives and comes back again while OPEC members lose revenue from depressed prices.

Please click here to hear Khelil's full comments and interview in this 35-minute replay about OPEC's meeting on Thursday.