Oil: Steady prices – Danske Bank

Analysts at Danske Bank point out that the oil prices are steady after the sharp increase yesterday, despite Qatar's announcement that it will leave the OPEC group on 1 January, possibly due to the strained relations with Saudi Arabia and pressure from US president Trump.

Key Quotes

“Qatar is OPEC's 11 ^th biggest oil producer, but only accounts for less than 2% of total output, implying a limited impact on this week's OPEC production cut discussions. On this note, Saudi Arabia and Russia are reported to disagree on how to share the production cuts.”

“We look for a rebound in the oil price in Q1 next year.”