Analysts at Danske Bank point out that the oil market has had to digest a lot of news this week as at the beginning of the week the market had to cope the effect of oil-related sanctions on Iran.
“Yesterday, news broke that OPEC+ (the corporation between OPEC and oil producers outside OPEC, including Russia) will meet on Sunday to discuss a common strategy for the oil market in 2019, as the current agreement to cut production ends this year. Apparently, an extension of production cuts is on the table.”
“The news provided some temporary support to oil prices yesterday. However, that support vanished when the weekly US inventory report confirmed the large stock build last week, as reported by API on Tuesday. So far this week, the price on Brent crude has traded in the range of USD71.2-73.5/bbl.”