Year End Witnesses a Plunge in Oil Market

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Crude oil prices were up in Asia-Pacific markets as Chinese manufacturing data came in stronger than expectations, reports Freight Investor Services.

Deeper production cuts

The weekend just gone brought news that China’s large, state-linked manufacturing sector returned to expansion this month, albeit very modestly after six straight months of contraction.

Iraq said that OPEC and its allies will consider deeper production cuts, though the comments come after the coalition had widely signalled reluctance to take such action.

Oil market slow steams

The reduction could be about 400,000 barrels a day, Iraq’s Oil Minister Thamir Ghadhban told reporters in Baghdad on Sunday.

It’s much more likely that OPEC will at least extend existing output cuts to June 2020 when they meet this week.

So as we slow steam into the end of the year all the fundamentals that will shape the start next year are realigning.

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Source: Freight Investor Services

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