The drag on oil demand in China, Europe and the US is weighing heavily on crude prices, capping the potential gains from OPEC+ supply cuts, Citigroup Inc. analyst Ed Morse says.
China is cutting back purchases of expensive crude and exporting more high-value refined products as the country grows to be almost as important to oil markets as OPEC+, Morse said in an interview on Bloomberg Television. The nation’s pullback will counter crude’s recent rally and help shift the oil market to a surplus next year, with Brent collapsing to the low $70s a barrel, Morse wrote in a note earlier today.
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