A green light signaled from OPEC, combined with support from policymakers to back global markets helped crude oil prices find a floor, according to analysts at TD Securities brief. WTI trades at $48.15.
Key quotes
“Saudi Arabia wants OPEC+ to cut production by more than 1m b/d but OPEC’s JTC is still signalling only a 600k-1m bpd potential cut range.”
“China’s oil refiners are increasing their intake but rest-of-world still remains at risk of further damage as the contagion spreads.”
“All eyes are on OPEC, and unfortunately for the bulls the bar for further CTA buying in WTI and Brent crude is elevated. Trend followers are wrapping up their selling program in RBOB gasoline, which will leave the market positioning in energy products as the wildcard for the OPEC meeting.”
SOURCE: fxstreet.com