Oil industry press reports that most of OPEC are clamoring for an emergency technical meeting to discuss the state of oil markets. Still, Saudi Arabia and the United Arab Emirates are opposed. Another signal that Saudi Arabia is digging in? Indeed, the risk remains skewed to the downside for oil until this hard-line changes, or COVID-19 news flow turns positive.
However, Trump does hold more sway over Saudi Arabia (than Russia), and Riyadh could be more susceptible to change, given the extent to which it relies on the US for military support in the middle east. So, the market is sitting tight, holding onto the price bounce in Asia waiting for further news flows from OPEC or The US DoE.
The is still in demand despite pressure easing on risky assets. The weakness in the could partially be blamed on European borders being shut. But with liquidity yet far from average, the main thing to watch today…