Crude oil market has mostly ignored the speculations on a possible OPEC output cut in 2019. Brent has expended its bearish path to seven-month lows marginally above the $70 crucial handle on Friday as concerns over global oversupply weight. The dollar continued its advance after the hawkish FOMC statement, which adds to the selling pressure.
As the US sanctions on Iran turned out less aggressive than investors expected, the worries about oversupply reemerged, in addition to risks of a weaker demand amid the increasing signs that world economic growth is slowing. Besides, the US and Russia are pumping record volumes.
But Brent still has a chance to refrain from a more aggressive plunge as OPEC'sJoint MinisterialMonitoring Committee will meet this weekend in AbuDhabi, where ministers could discuss and recommend a cut in production, citing the mentioned risks.
In the short-term, however, Brent will likely remain under pressure, especially if today’s Baker Hughes report points to another rise in rig counts in the US.