Free Trial

MNI Commodity Weekly: Tight Oil Markets on Surprise Cuts

Photo by Shaah Shahidh on Unsplash
aerial photography of tanker ship

Oil Markets Face Further Tightness On Surprise Cuts Until Year-End: Saudi Arabia announced to extend its unilateral output cut of 1mbpd until the end of the year, followed shortly after by Russia’s announcement to extend export cutbacks of 300kbpd for the same period. Markets anticipated cuts to be only extended into October, causing further risks of market tightness for the second half of this year if Chinese demand growth continues to materialize.

Oil Market: Crude markets remain in a strong upward trend reaching the highest since November driven by tightening global supplies and expectation of a further drawdown in global inventories.

Gas Market: No clear direction in the TTF gas market as Norwegian maintenance peaks and with global LNG supply risks from Australia balanced against low European demand and healthy natural gas storage levels.

Full piece here:

MNI Commodity Weekly - Tight Oil Markets on Surprise Cuts.pdf




To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.