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WTI plunged again as Saudi Arabia instructed Aramco to keep production at 12.3m barrels per day. News for the sector continued to deteriorate, economists at ANZ Research inform.

Key quotes

“The market took little comfort central bank policy measures to lessen the economic impact. However, it was ongoing supply-side concerns that really pushed crude prices lower.” 

“The Saudi Ministry of Energy directed state-producer Saudi Aramco to continue to supply crude oil at levels of 12.3mb/d over the coming months. Russia, a key member of that agreement also appears to be battening down the hatches.”

“The collapse in Brent crude below USD25/bbl has resulted in several OPEC members calling for new action. Iraq urged the group to hold fresh talks to address the crisis. For the moment, key members Saudi Arabia and Russia have rejected those calls.”