Oil: Market to re-balance by mid-year – ANZ

Supply side issues continue to drive sentiment in the crude oil market, strategists at ANZ Bank apprise.

Key quotes

“Saudi Arabia aims to pump just under 7.5mb/d in June, compared with its official target of 8.5mb/d. This would take its output to the lowest level since mid-2002. The United Arab Emirates also announced it would cut by an additional 100kb/d in June.” 

“Continental Resources expects the market to re-balance by mid-year, and will reopen oil wells quickly once prices recover.”

“And while demand appears to be recovering, there are also doubts as to its timing. In the US, the volume of fuel sold by retailers rose by only 7% in the week ending 2 May. In Europe, the varying degrees of lockdowns continue to hobble demand.”