Oil: Demand projections continue to move lower – TDS
|Oil plunged to its lowest in some 18 years while President Trump will continue his dialog with Russia's Putin about the oil market, strategists at TD Securities report.
Key quotes
“Demand projections continue to move lower, while Saudi Arabia shows no signs of reconsidering its supply increase in the next few days.”
“We suspect that for any deal to take place, Russia will likely ask for removal of all sanctions on Russian oil interests, and demand that the US must also cut production.”
“We will get a supply decline, one way or another. The oft-cited proposal, between the US, Russia and OPEC could see 4-5 million b/d worth of cuts, representing a 10% cut by these major producers. But, it remains unlikely that even a cut of that magnitude would do much in the short term, when demand is set to drop 15-20 million b/d in the next month or so.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.