Listen to the market mood for the coming trading session:
Oil buyers in anticipation of OPEC+ Meeting
We are expecting oil buyers on pullback today as OPEC+ reported to be proposing a 600K supply cut with an immediate start through to June if agreed by all members. Oil has been under continued pressure lately on the coronavirus fears. The concern has been that a global pandemic will restrict the demand for oil. Less construction, air flights cancelled, tourism reduced and cities on lockdown would all dampen the need for oil. This has, on top of an already well-supplied oil market, caused oil to fall.
However, there is a desire by the OPEC+ partnership to agree to longer production cuts. These may even extend to 2020 as there were unconfirmed reports that these could last to year-end. The Russian Energy Minister, Alexander Novak, has said that Russia needs a few days to analyse the situation on the oil market and will come up next week with its position for OPEC+.
Risks to this outlook
When trading market expectations you can never know the future, so there are inherent risks with this kind of ‘speculation’.