According to analysts at Rabobank, the market is forcing OPEC’s hand into cutting production at the upcoming meeting and if no cut is announced, we can expect prices to fall sharply.
Key Quotes
“Our baseline forecast is a 1mb/d cut, which in our view would balance the market in 2019.”
“The closely followed US inventory data has been strongly correlated with Saudi imports.”
“The market is susceptible to a strong short covering rally should OPEC surprise with a bigger than anticipated supply cut.”
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