Central banks are signaling a globally coordinated effort to stem the economic impact of the virus and the sharp deterioration in financial conditions, but another signal was more closely watched in energy markets this weekend, strategists at TD Securities apprise.
Key quotes
“Signs emerged from Russia that prices have breached the Putin-put, implying the country will join forces with other OPEC+ members to stabilize oil markets.”
“Average analyst expectations are for a 750k bpd cut but we suspect that markets will require OPEC to take a more decisive measure as the infection spreads outside of China.
“In this context, RBOB gasoline should continue to see CTA selling pressure as momentum funds respond to the still-deteriorating momentum signals.”
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