Oil rebounds on optimism over OPEC+ production pact
Jun. 15, 2020 3:45 PM ETCrude Oil Futures (CL1:COM)By: Carl Surran, SA News Editor9 Comments
Crude oil (CL1:COM) swung from sharp early losses to settle with gains, after the United Arab Emirates Energy Minister Suhail Al Mazrouei voiced confidence that OPEC+ countries with poor compliance to agreed cuts would meet their commitments.
Prices could be back to "normal" within 1-2 years, as cuts nearing 10M bbl/day drain excess barrels from the market, Mazrouei said during a call hosted by the Atlantic Council.
Iraq plans to cut production further this month to comply with the OPEC+ agreement, Reuters reported over the weekend, a move that could instill more confidence in global supply cuts.
Also, the Fed said it will update its purchases of corporate bonds to include individual bonds in addition to exchange-traded funds, which helped lift the broader market.
U.S. July WTI futures ended +2.4% to $37.12/bbl after falling more than 4% in morning trade; August Brent +2.5% to $39.73/bbl.
SXY Price at posting:
23.0¢ Sentiment: Buy Disclosure: Held
