Oil: OPEC's production cuts liven up the market – ANZ

Investors continue to shrug off rising geopolitical tension, as economic activity shows signs of improving, strategists at ANZ bank report. 

See: Russia close to hitting OPEC+ oil output target in May – Reuters

Key quotes

“President Putin and President Trump discussed the OPEC+ deal, with the Kremlin saying it had brought great stability to the oil market.” 

“A Bloomberg report suggests there is some support for OPEC+ extending the current production quotas another one to three months. The 23% cut in output was supposed to be in place for only May and June before slightly higher quotas kicked in for H2 2020. The group is also considering bringing forward its next planned meeting to the 4 June.” 

“Investors were buoyed by further falls in US drilling. Another 15 rigs were stood down, bring the total operating rigs to 222. This is the lowest since the financial crisis in 2009.”