- Crude oil prices bounce nicely from yesterday’s losses, helped by gains in global stocks, a slightly weaker dollar and an outage hurting Libyan production; WTI +2.4% to $52.24/bbl, Brent +1.5% to $60.90/bbl.
- Russia says it will cut oil output by 50K-60K bbl/day in January while gradually building to an agreed cut of 220K bbl/day, but some analysts think the cut may not be enough to restore balance to the market.
- “There remains a lot of uncertainty if the production cut is thick enough to make a significant dent in global supply,” says Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore.
- However, BofA Merrill Lynch thinks the OPEC+ cuts were sufficient and expects Brent crude to regain its recent losses in 2019 and settle at $70/bbl, predicting a "relatively balanced oil market" and stable inventories next year.
- "Volatility will be high in the near future, but going into 2019, we are constructive on oil prices," says Hootan Yazhari, BAML's head of global frontier markets equity research.
- ETFs: USO, XLE, OIL, UWT, UCO, VDE, XOP, DWT, ERX, OIH, SCO, BNO, DBO, ERY, DIG, BGR, GUSH, DTO, FENY, USL, IYE, DUG, DRIP, IEO, FIF, DNO, NDP, PXE, OLO, RYE, PXJ, SZO, CRAK, FXN, OLEM, WTIU, DDG, OILK, NANR, OILX, WTID, USOI, USOU, USOD, FTXN, JHME, ERYY, ERGF, OILD, OILU, USAI
- Now read: Commodities Recap For The Week Of Dec. 7, 2018
Original article