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More on oil – grim outlook

  
  Analysis
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Scanning across some notes on OPEC and crude, some snippets … not optimistic:

Via RBC:
  • OPEC+ is apparently in crisis management mode
  • We think OPEC+ may make more headway by sharpening its compliance messaging, particularly around perennial underperformers, most notably Russia.
  • we think Saudi Arabia may be amenable to dropping production even further
  • none of these measures will arrest the immediate demand destruction and storage saturation problems that are weighing so heavily, particularly on US prices, they could potentially help ensure a better back half of the year if the COVID-19 crisis is contained
(Bolding above is mine)
Via TD:
  • Although we don’t expect negative prices to remain  …  the imbalance in the offer vs. demand and storage capacity issues could see a repeat of this issue.

OPEC+ said to reach agreement to reduce output target by 500k bpd

  
Analysis, Crude
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OPEC+ ministers are said to have agreed to the deal

The closed session meeting is still taking place but as ever the case, the decision is already being leaked out. In any case, the 500k bpd additional cut here is what has been anticipated over the past two days.

But all this does is just bring the target level closer to actual production levels seen throughout the whole of this year. Oil stays slightly pressured with Brent near lows just above $63 and WTI likewise just above $58.

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