Oil: Under pressure waiting for Russia’s response – TDS

The reduction of 600k barrels per day in production recommended by the OPEC technical committee is thought to be seen as an exaggeration by Russia. Oil market is expected to be under strain in the next days, according to analysts at TD Securities.

Key quotes

“Headlines from Russian Minister of Energy Novak stating there are no signs Chinese demand for Russian oil and gas is falling, and noting only a 150-200k bpd hit to global demand, suggests Russia is still reluctant.” 

“We can expect an answer from Russia in the coming days, and in the meantime the oil market is likely to remain under pressure as fears of large surpluses loom large.” 

“CTAs remain sellers of Brent but have reversed course on RBOB gasoline selling, turning into buyers on the day and seeing the product outperform the complex this morning.” 

“We note gasoline is trading in whipsaw territory as the bar is razor thin for gasoline buying to flip back to major selling below $1.47/gal.”