Thursday’s OPEC+ meeting is a major risk to the market but it’s ultimately only part of what needs to happen to rebalance crude. The Australian was Wednesday’s top performer, while the lagged on growing disagreements at the EU regarding Corona bonds. US will also command attention on Thursday (more on it below). A new trade for the Premium Insight’s subscribers has been issued before the NY Close.
In ordinary times, a 1-2 million barrel cut from OPEC would be major news but on Thursday the risk is that a 10 mbpd cut won’t be enough. The US weekly showed that implied demand for crude was 14.446 mbpd last week compared to 21.86 pre-virus. That may flatter the global picture, but even at that level, it shows demand at 66% of normal. Extrapolate that globally, and it argues there is an excess of 35 million barrels per day.
Those are the types of numbers OPEC+ members and others invited to the meeting will hear on Thursday. The official talks…
