Coiling

DXY dynamics and the bid for equities were in the driving seat on Thursday, with crude settling lower on the day, but well-off worst levels, before WTI & Brent added ~$0.10 in overnight trade.

• It is worth flagging that Thursday saw RTRS run a report on the back of an OPEC+ document they observed, which suggested that "some members of the OPEC+ group of oil-producing nations would need to slash output by an extra 2.31 million barrels per day (bpd) to make up for their recent oversupply. The surplus seen between May and July ought to be compensated for in August and September, the report said. The report shows OPEC+ expects oil demand in 2020 to fall by 9.1 million bpd, 100,000 bpd more than in its previous forecast, before rising by 7 million bpd in 2021. However, OPEC+ also see an alternative scenario in which a stronger and more-prolonged second wave of infections hits Europe, the United States, India and China in the second half of the year. Under this scenario, demand is forecast to fall by 11.2 million bpd in 2020, sending OECD commercial oil inventories in the fourth quarter to 233 million barrels above the latest 5-year average, the report showed. Stocks would stand at 250 million barrels above the latest 5-year average in 2021."