Crude Oil: Prices under pressure – ANZ

Analysts at ANZ explain that crude oil prices sank as investors weighed up the impact of increases in drilling activity in the US and the number of rigs drilling for oil rose by six to 765, the highest since August, according to Baker Hughes data.

Key Quotes

“This played into the hands of sellers, who were already excited as the risk-off tone created a tough environment for risky asset classes. Investors also got a dose of reality after Iran warned it could increase output within days of OPEC removing the current curbs on production. Oil minister, Bijan Namdar Zanganeh said Iran could raise production by at least 100kb/d within five or six days.”