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According to ANZ analysts, oil market has quickly discounted the impact of the recent attack on oil facilities in Saudi Arabia, returning its focus to the weakening economic backdrop.

Key Quotes

“We remain convinced that the risk of further disruptions is high.”

“However, an acceleration in the slowdown in US shale oil supply will likely temper the impact of any decline in oil demand in 2020. The rig count has fallen and shale oil output has dropped from 150kbbls to only 53kbbls.”

“Overall, we expect the crude oil market to be relatively balanced in 2020, with growth in US shale oil falling to only 250kb/d.”