ANZ on oil - selloff overdone
Summary comments from ANZ on oil, we believe the sell-off is overdone
- Supply side issues have been pushed into the background amid an escalation in the trade conflict.
- OPEC's oil production fell to 29.8mb/d, lowest in last 5-years. Saudi Arabia is now looking to cut deeper in the coming months, while OPEC+ remains committed to rebalance the market.
- This should offset some of the fears about weaker demand
ANZ note the upcoming OPEC meeting, Sep 12:
- meet to discuss strategy to halt the fall of oil prices
- Deeper cuts, designed to support the market, may result
Also say US oil demand is slowing.