Analysts at ANZ note that the crude oil prices gained as geopolitical tension rose amid the investigations of the disappearance of WSJ journalist, Jamal Khashoggi, after entering the Saudi Arabian embassy in Turkey.
Key Quotes
“With US President Trump warning of consequences if it’s found that Khashoggi was murdered, investors are becoming increasingly concerned that the oil market will be embroiled in the issue.”
“Geopolitical tension was also heightened amid reports that the US is looking at placing sanctions on Russia over breaching the Cold War missile pact. This could place some uncertainty around Russian attempts to bring international investment into its oil industry.”
“Oil prices were under pressure earlier in the week after EIA data showed a larger-than-expected rise in inventories in the US. The increase was the result of refiners halting some operations due to maintenance, while drillers are picking up activity following the recent price rises.”
“Reports that Iraq continues to raise output failed to ruffle any feathers in the market. Iraq’s Oil Minister said the country is currently producing 4.78mb/d and is likely to reached 5mb/d in early 2019.”
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