Oil: Scope for higher prices in the near-term if there is a deal – Rabobank


Analysts at Rabobank see strong support for a global coordinated cut in crude oil production to occur, as in effect, it is already happening. They point out any supply cut would likely be dependent on non-OPEC participation.

Key Quotes: 

“We see scope for higher oil prices in the near-term should a global production deal come to fruition. We noted last week that we saw oil prices following two very different trajectories depending on how the price war plays out. This week an abrupt end to the price war is looking more likely and the market will soon find out as the Saudis have called for an emergency meeting between global producers to be held virtually early next week.”

“It is also worth noting that the speculative interest is largely "short" at the moment including trend followers, momentum traders, and “carry” strategies. These “shorts’ are now at risk of giving back a large portion of recent gains should a global supply cut be put in place but much will depend on how quickly the virus related demand losses begin to recover in the weeks and months ahead.”
 

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD pressured around 1.13 after jump in US jobs

EUR/USD is trading around 1.13, down after US Non-Farm Payrolls shocked with a leap of 2.5 million jobs in May, contrary to all projections. The greenback is gaining while stocks are falling, a correlation breakdown. ECB stimulus previously supported the euro.

EUR/USD News

GBP/USD retreats from highs

GBP/USD is trading below 1.27, off the highs. The pound is struggling after Chief EU Negotiator Barnier reported little progress in Brexit talks. Robust US jobs support the dollar.

GBP/USD News

Gold risks further falls amid a potential bear pennant

The massive $45 slump Gold prices (XAU/USD) on Friday created a bearish pennant formation on the hourly chart, indicating that the spot remains exposed to further downside risks in the near-term.

Gold News

Institutional demand exceeds Bitcoins supply

Greyscale floods the market with fresh money to satisfy the demand of its clients. Investors, willing to pay a 29% surcharge for exposure to Bitcoin without suffering the legal and operational inconveniences. Market remains at risk on the verge of new bullish territory.

Read more

WTI rallies above $39 as focus shifts to OPEC+ meeting

Crude oil prices built on Thursday's modest gains and rose sharply on Friday boosted by the upbeat market mood optimism surrounding Saturday's OPEC+ meeting. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures