Oil: Sell-off overdone - ANZ

The Australia and New Zealand (ANZ) banking group analysts offer their outlook on oil prices, especially in the face of the recent sell-off.

Key Quotes:

“We believe the sell-off is overdone.

Supply side issues have been pushed into the background amid an escalation in the trade conflict. 

OPEC's oil production fell to 29.8mb/d, lowest in last 5-years.

Saudi Arabia is now looking to cut deeper in the coming months, while OPEC+ remains committed to rebalance the market.

This should offset some of the fears about weaker demand.

The upcoming OPEC meeting, Sep 12 - to discuss strategy to halt the fall of oil prices.

Deeper cuts, designed to support the market, may result.

US oil demand is slowing. “