Oil expected to move higher on OPEC - ANZ

Analysts at ANZ noted that liquidity in crude oil markets remained extremely low, with prices ending the week largely unchanged. 

Key Quotes:

"In fact, Brent oil traded in a very tight range of only USD1.70/bbl over the course of the week. 

This low volatility is the result of the market caught between the exuberance of production cuts from OPEC and concerns over rising inventories in the

US. To compound things, the oil rig count in the US rose again last week, and at 597, is the highest since October 2015. We continue to view the trend of rising inventories and drilling activity in the US as expected consequence of rising prices after OPEC’s production cut agreement. 

However, it still remains unlikely to negate the impact of the falling output from OPEC, and as such we expected prices to eventually push higher."