- Crude oil futures erase the gains they made on Friday following OPEC's decision to cut production: January WTI settled -3.1% to $51/bbl after rising 3.3% last week, and Brent -2.8% ended at $59.97/bbl following last week's 3.7% jump.
- "It didn’t take long for Friday’s OPEC+ planned production to get priced in as focus turned back to the potential impact of worsening U.S.-China trade tensions," says Colin Cieszynski, chief market strategist at SIA Wealth Management.
- Oil’s gains risk being quelled by uncertainty over how the OPEC+ coalition will implement its deal to cut output, Morgan Stanley (NYSE:MS) analysts say.
- While prices can continue to rise as the pact significantly decreases the possibility of a glut, crude’s four-year high reached in early October is unlikely to be reached again in coming quarters, Stanley says.
- Goldman Sachs (NYSE:GS) says the oil market may rebalance in H1 2019 as Iranian production is squeezed by U.S. sanctions and a lack of new pipeline out of the Permian Basin, but the firm is less optimistic about H2 as "OPEC+ attempts to sequentially grow and given an expected stabilization in Iran production, the unleashing of the Permian growth and back-end loaded growth in Canada, Brazil and Norway."
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- Now read: The Latest Issues Facing Crude Oil
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