The OPEC+ meet next week will be crucial for the oil market
From a two-month high of $64.6 a barrel earlier this week driven by some optimistic noises about the US-China trade deal (even if partial), Brent has come under pressure (a tad below $ 64 a barrel on Friday) following a spate of profit-taking based on the rising US inventory.
Oil production in the US has continued to expand and now stands at a record level of 12.9 million barrels a day. Production and trade data suggest that the US is now nearing self-sufficiency, and arguably, it is the world’s largest oil producer and significant exporter.
Also, the optimism relating to a Phase One agreement between the US and China is beginning to fade. President Trump’s latest action (signing of Bill on human rights) relating to Hong Kong has upset the Chinese no end and it is sure to reflect on trade talks.
