Analysts at Danske Bank point out that the oil prices are steady after the sharp increase yesterday, despite Qatar’s announcement that it will leave the OPEC group on 1 January, possibly due to the strained relations with Saudi Arabia and pressure from US president Trump.
Key Quotes
“Qatar is OPEC’s 11 th biggest oil producer, but only accounts for less than 2% of total output, implying a limited impact on this week’s OPEC production cut discussions. On this note, Saudi Arabia and Russia are reported to disagree on how to share the production cuts.”
“We look for a rebound in the oil price in Q1 next year.”