The release of oil from strategic reserves ramps up competition for control of the oil market amongst the world’s biggest producers. Strategists at ANZ Bank do not expect OPEC will stand by idly as the market enters a critical period. They expect Brent Oil to find support at the $80 level.
“The most likely scenario is that the OPEC+ alliance suspends its scheduled 400kb/d increase for January at its meeting next week. This would buffer the market from the peak of seasonal weakness in January, just as governments are adding barrels of oil from reserves.”
“It comes amid risks to demand as a pandemic wave hits Europe and the US. Restrictions on travel are already being implemented across the continent in a bid to suppress spread.”
“Such a move would be welcomed by the market, which has been increasingly pricing-in the likelihood of oil reserve releases pushing the market into surplus. This would see the market remain in deficit in Q1 2022 and likely support Brent crude prices at $80/bbl.”
© 2000-2021. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
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.
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 firstname.lastname@example.org.