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ANZ Pull Back Short-Term Price Target For Brent

OIL

ANZ note that "the new OPEC+ agreement is likely to see prices come under pressure in the short term, as investors unwinding positions on the prospects of higher supply in coming months. However, even with higher output, the market remains relatively tight. High frequency data is showing encouraging signs for oil, with U.S. gasoline demand recently hitting a record high. This should limit the duration of the selling. OPEC's ability to reach an agreement should dispel concerns that the alliance is at risk of breaking up. Its monthly reviews of the agreement should allow it to make adjustments should fundamentals shift. This will provide some stability to the market over the coming months. Nevertheless, the likelihood of prices surging higher over the next month or two has diminished. As such we are pulling back our short term (0-3-month) target for Brent crude to USD78/bbl."

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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