Market news
11.09.2019, 09:00

Oil: Weakening macro backdrop – ANZ

According to ANZ analysts, crude oil market faces an important decision point, as OPEC and its allies meet to review OPEC’s oil production strategy and the weakening macro backdrop is further complicated by changes in Saudi Arabia’s ministerial responsibilities.

“The surprise replacement of Saudi Arabia’s Energy Minister, Khalid Al-Falih, with Prince Abdulaziz al Salman raises questions about the kingdom’s oil policy. We don’t see the move as a prelude to significant change. The prince is a long time energy ministry official and has been part of the Saudi delegation that has set the OPEC production policy. As OPEC and its allied producers (such as Russia) meet in Abu Dhabi, they face unprecedented uncertainty. In particular, tension between the US and Iran/Venezuela continues to impact the market. We have subsequently reduced our forecast oil demand growth to 1mb/d this year (from 1.2mb/d). Even so, we see sizeable stock drawdowns in Q4. With crude oil well below Saudi Arabia’s target of USD80/bbl, we feel they have no choice but to continue the current production cut agreement to help support current prices. However, the ability to push prices higher looks limited.”

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location