ANZ on oil - OPEC to cut supply further
ANZ's outlook for price is fairly neutral out a week and month.
- We see macro factors continue to override the fundamentals. Further, the latest OPEC's August production has seen marginal increase; this aided the weaker market sentiments. That said, Saudi Arabia has still reduced its production more than promised.
- We expect the OPEC to cut supply further, and involuntary supply losses in Iran and Venezuela will keep the market tight in the coming months.
- Prices are likely to move towards USD65/bbl