Nasdaq Lead Energy Analyst Tamar Essner discusses OPEC output cuts and the energy markets. She speaks on “Bloomberg Daybreak: Australia.”
So many things are impacting OPEC oil prices, including stocks performance, Dollar strength, Shale, and Geo-politics.
So which of these have a direct link to oil?
“Because the underlying fundamental picture has gotten tighter, the OPEC output cuts have been affected,” said Essner.
“Global inventories have been reduced by more than half, leading to a balance between supply and demand, and as such the oil markets will be more prone to headlines, such as US Dollar, US shale, and Geo-politics.
She added that geo-politics will play a larger role in the future because there isn’t that supply cushion anymore.