Early resilience in Brent crude didn't last, we are now back close to $90/bbl. It's a similar story for WTI, back to the low $83/bbl region. Overall ranges have been modest, albeit with a downside bias. Tighter policy from major central banks and clouds over the global economic outlook remain the main concerns on the demand outlook.
- Brent is on track for its fourth straight weekly decline. Focus is likely to remain on whether we can break below the $90/bbl and trend down further. Dips sub this level have been supported so far in September.
- Still, the sell-side consensus is for a recovery in oil prices through Q4 (see this Bloomberg article for more details).
- Nigeria's oil minister stated that OPEC+ may be forced to make additional production cuts if prices continue to fall. A call between Russian President Putin and Saudi Crown Prince Mohammed bin Salman also committing to maintaining current OPEC+ agreements.
- Earlier headlines, from Reuters, also suggested little progress in terms of a fresh US-Iran nuclear deal.