Oil: Its all about prices – Deutsche Bank
|Analysts at Deutsche Bank points out that it has been all about Oil after prices fell sharply yesterday in the wake of OPEC and non-OPEC producers agreeing to extend the production cut deal by 9 months into 2018.
Key Quotes
“That was pretty much as guided to although the disappointment reflected in the price action appeared to be twofold with cuts not being deepened and no new producers joining the pact. It did however appear that there was some optionality left open for cuts being extended beyond the additional 9 months should prices decline. It was also noted that the importance of the five-year rolling average of OECD inventory was cemented and our commodity strategists highlight that this helps solidify their expectations that output controls will eventually be extended at least until the end of 2018, and more likely than not into 2019.”
“After touching a high of $52.00/bbl yesterday morning, post the headlines WTI proceeded to tumble and finished the day down -4.79% at $48.90/bbl and back to the lowest level in a week. It was also the third biggest daily decline this year. This morning it is down another -0.90% too.”
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