Iraq’s Oil Minister Thamir Ghadhban recently crossed wires, via Reuters, while signaling that the upcoming meet between the global oil producers including Russia will debate over deeper production cuts.
Key quotes
The additional cut is required.
The cut proposal will be real.
Additional oil cuts of 400K barrels per day (bpd) not final.
1.2mbpd cut is not enough.
Slower demand is a bigger impact next year than non-OPEC (Organization of Petroleum Exporting Countries) supply.
The deeper cut is needed because of slowing demand.
FX implications
While an upbeat reading of private inventory numbers was already helping the WTI, news like this favored the energy benchmark to ignore trade war fears while taking the bids to $56.40 amid initial Asian trading hours on Wednesday.
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