ANZ oil strategy - expect prices to rise

Author: Eamonn Sheridan | Category: News

A snippet from ANZ's latest on oil,  

  • replacement of Saudi Arabia's Energy Minister, Khalid Al-Falih, with Prince Abdulaziz al Salman ...  We don't see the move as a prelude to significant change
  • As OPEC and its allied producers (such as Russia) meet in Abu Dhabi, they face unprecedented uncertainty. 
  • … tension between the US and Iran/Venezuela continues to impact the market. 
  • trade tensions are now also weighing on manufacturing activity
  • Global vehicle sales, a key determinant of gasoline demand are on track to fall 6% in 2019
  • PMIs remain weak across the world
  • 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.
A snippet from ANZ's latest on oil,  
ANZ mention the meeting in Abu Dhabi today. Its a monitoring committee meeting bute yeah, there will be discussion of price, you can coutn on it.

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