Oil: Pricing some sort of agreement – ANZ

Oil producers meet to discuss production cuts. The market seems to be pricing in some sort of agreement, raising the risk of weaker oil prices if they fail, per ANZ Bank.

Key quotes

“As producers prepare for a meeting to discuss potential curbs, news emerged that Russia was willing to cut oil production by as much as 1.6mb/d. This amounts to approximately 14% of its total production.”

“The US remains the key, with most producers expecting the world’s biggest producers to be part of the agreement. However doubts remain. President Trump said ‘nobody has asked me’, when probed about the discussions, adding ‘if they ask I will make a decision’.” 

“The EIA reported 15.2mbbl rise in US inventories, the biggest gain in data since 1982.”