Ashley Kelty, oil and gas research analyst at Cantor Fitzgerald Europe, comments on the recent slump in oil prices.
“In terms of the collapse today, the wider selloff in equities – sparked by weak retail and tech performance - has further exacerbated fears of weakening global demand amid a weaker economy and the spectre of escalations in the US-Sino trade war. The hopes that the US and China may be closer to a rapprochement were dashed at the APEC summit at the weekend, with expectations growing that a deal will not be struck at the G20 later this month, and subsequently new tariffs will be applied in the New Year.
“Rising US crude inventories are also weighing heavily on sentiment, with expectations of a further build (of over 2 million bbls) this week. While the news that OPEC+ said it would cut 1.4 million bpd from production, it’s looking likely that the cuts will have to be deeper in order to stabilise the price. We would anticipate further weakness until the reaction from OPEC+ and the G20 summit is clearer.”
Read the article online at: https://www.oilfieldtechnology.com/special-reports/21112018/cantor-fitzgerald-europe-deeper-cuts-required-to-stabilise-oil-price/