Today's Saxo Market Call podcast
Global Market Quick Take: Europe
Crude oil prices remain anchored near a cycle low with Brent crude hovering near $70 per barrel while WTI has slumped back below, currently trading around $68. The main driver continues to be concerns about the global growth and demand outlook, not only in China, the world’s biggest importer, but also the US and other key consuming regions. This focus has led to selling in the crude oil market from macroeconomic-focused funds seeking a hedge against such a slowdown.
Inadvertently the market is once again on a collision course with some of the major producers, led by Saudi Arabia, who have yet to see any price supportive impact of the April 2 production cut. Ahead of the OPEC+ meeting this weekend, the temperature has been rising, with the Saudi Energy Minister having become very vocal in his attack on speculators and even the International Energy Agency, whom he has accused of incompetence.
OPEC+ wants to show unity but with Russia continuing to sell discounted crude to China and India, two of Saudi Arabia’s major customers, the weekend meeting may spring a surprise or two. Reporting from the meeting will also be different after OPEC, under pressure from the Saudis, denied access to journalist from three major media groups.