A snippet from ANZ's latest on oil,
- replacement of Saudi Arabia's Energy Minister, Khalid Al-Falih, with Prince Abdulaziz al Salman ... We don't see the move as a prelude to significant change
- As OPEC and its allied producers (such as Russia) meet in Abu Dhabi, they face unprecedented uncertainty.
- … tension between the US and Iran/Venezuela continues to impact the market.
- trade tensions are now also weighing on manufacturing activity
- Global vehicle sales, a key determinant of gasoline demand are on track to fall 6% in 2019
- PMIs remain weak across the world
- We have subsequently reduced our forecast oil demand growth to 1mb/d this year (from 1.2mb/d)
- Even so, we see sizeable stock drawdowns in Q4. With crude oil well below Saudi Arabia's target of USD80/bbl, we feel they have no choice but to continue the current production cut agreement to help support current prices. However, the ability to push prices higher looks limited.
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ANZ mention the meeting in Abu Dhabi today. Its a monitoring committee meeting bute yeah, there will be discussion of price, you can coutn on it.