Analysts at Australia and New Zealand Banking Group (ANZ) offer their oil-price outlook heading amid US-Iran geopolitical risks and ahead of the key OPEC JMMC meeting due later on Thursday.
“Replacement of Saudi Arabia's Energy Minister, Khalid Al-Falih, with Prince Abdulaziz al Salman ... We don't see the move as a prelude to significant change
As OPEC and its allied producers (such as Russia) meet in Abu Dhabi, they face unprecedented uncertainty.
Tension between the US and Iran/Venezuela continues to impact the market.
Trade tensions are now also weighing on manufacturing activity.
Global vehicle sales, a key determinant of gasoline demand are on track to fall 6% in 2019
PMIs remain weak across the world.
Even so, we see sizeable stock drawdowns in Q4.
With crude oil well below Saudi Arabia's target of USD80/bbl, we feel they have no choice but to continue the current production cut agreement to help support current prices. However, the ability to push prices higher looks limited.”
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.