Crude oil prices have recovered after vested interest commentary; any US-Iran deal has been overwhelmed by fears of production cuts and if the global growth outlook remains opaque, where will WTI crude end up?
Crude oil tried to go lower to start this week after speculation swirled that a US-Iran deal could finally emerge that would add to global supply. This would potentially replace lost Russian production.
Black gold then found support from two interviews conducted by Bloomberg.
He also said that any additional barrels from Iran would be gradual, and that market demand was strong enough to be able to take any extra production that they may add.
An interesting comment was that he didn’t rule out the possibility of adding the US to the cartel at some stage to form a potential OPEC++.
The sentiment re-enforced remarks from Saudi Arabian Energy Minister Prince Abdulaziz bin Salman. He said that OPEC+ would be able to cut production if it was deemed necessary.
He added that the inefficiency of the paper market is not reflecting the fundamentals of the physical market.
Read the article by Daniel McCarthy on IG.