On net, we believe OPEC’s policy coming out of the December meeting should support oil prices in the low $60s for Brent crude and the mid-$50s for WTI. Downside risks could stem from greater-than-expected economic deceleration. On the upside, a reignition of the global manufacturing chain would go a long way toward supporting demand and market sentiment.
Greg E. Sharenow is an executive vice president in PIMCO’s Newport Beach office and a portfolio manager focusing on real assets.