A snippet from the latest from ANZ on oil, in brief:
- OPEC+ is sticking with its production cuts deal
- production is falling in Iran and Venezuela and risk of supply disruptions is rising in the Middle East
- Together these should see the oil market balance tightening in H2 2019.
- US shale companies have been pulling back on drilling, could limit growth in output from shale in near term.
- Slowing global economic growth will still see demand growing more than 1mb/d.
- We believe the market's focus will soon shift from a focus on softer demand to looking at supply disruption risks. This should see prices back above USD70/bbl in H2 2019.
