Oil: OPEC is reducing output sharply – ANZ

Crude oil bucked the trend, with sentiment boosted by bullish signals in the market, according to ANZ Bank.

Key quotes

“According to Petro-Logistics, exports fell by 5.96mb/d in the first half of May. Meanwhile, Saudi Aramco said it cut crude oil sales to the US and Europe by half. 

“The International Energy Agency said the global oil market was improving with demand a little stronger than expected. They increased their forecast for demand in Q2 by 3.2mb/d to 79.3mb/d.”

“Despite the upbeat tone, the IEA acknowledged the uncertain outlook, with risk of renewed outbreaks of COVID-19 still high and question marks over how far OPEC+ production cuts will be implemented.”