Oil prices are off their lowest level in more than a year after Saudi
Arabia ponders what it needs to do to stabilize prices. OPEC + will have a
two-day technical meeting starting tomorrow and expectations are high we could
see a total reduction of 500,000 to 1-million barrels per day of additional
cuts. The start of the trading week saw West Texas Intermediate crude fall to
the $50.42 level after reports that Chinese oil demand plunged by ~3 million
barrels a day, which is about 20% of their total consumption.
Oil prices will likely remain near the low $50s until we see further signs that China will see some return to normalcy with oil consumption. Any extended cuts delivered by OPEC + will likely deliver rallies that will get sold into. Oil prices will remain heavy until we see start to see some signs that the virus may be peaking.
Oil prices will likely remain near the low $50s until we see further signs that China will see some return to normalcy with oil consumption. Any extended cuts delivered by OPEC + will likely deliver rallies that will get sold into. Oil prices will remain heavy until we see start to see some signs that the virus may be peaking.
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