In view of analysts at TD Securities, energy market participants are closely watching for headlines from an expected meeting between President Putin and Crown Prince MBS this week at the G20, which could set the tone for the upcoming OPEC+ meeting.
Key Quotes
“At the same time, market participants are likely keeping their risk budget close to their chest ahead of the highly anticipated meeting between President Trump and Xi, which many see as a key indicator of the next leg of negotiations on the trade file.”
“While OPEC members are aware that supply risks remain abound, with Iranian-US tensions at a boil, the Libyan conflict still ongoing and Venezuelan production still crumbling, the demand side of the equation remains the key uncertainty.”
“We suspect that this will secure an extension to the supply curtailment agreement, which we think is in the bag. And, the cartel may recognize further risks to global demand, which would opening the door to “stealth cuts”, suggesting Saudi may keep compliance north of the 100% mark.”
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