Oil's rally to end now or further to go?
OPEC extend cuts
Oil's rally had a possible last hurrah after production cuts were agreed for a further month by OPEC+. The new deal is to cut 9.6m b/d instead of easing to 7.7m b/d as planned prior to this extension.
Risk for more upside
- Demand on the mend as economies open up.
- Saudi Arabia made some of the biggest price increases for crude exports
- US drilling down with oil rig numbers down ~70% this year.
- Friday's NFP jobs data brightens the outlook for demand.
- China recovering faster
Risk for downside
- US shale production to return and over supply will push prices down