The OPEC+ group’s decision to postpone its planned supply increases has not been enough to halt the decline in supply risk premiums, says Daniel Ghali, Senior Commodities Strategist at TDS.
Pressure continues on crude oil prices
“Our return decomposition framework continues to point to the erosion of supply risks in energy market pricing. Combined with a continued deterioration in demand sentiment embedded in prices, pressure remains on crude oil prices.”
“Historically, the implications of OPEC+ decisions have taken a few days to filter through to market pricing, suggesting that these trends could reverse. Still, while we expect some small-scale buying activity by CTA trend followers in WTI crude, we see no sign that the OPEC decision has halted the decline in supply risk premia just yet.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
