BLOOMBERG.COM
Oil investors looking for signs of a sustained price recovery would do well to assess U.S. supplies rather than the banter between major producers on freezing output, according to Saxo Bank A/S. While OPEC members and producers outside the group are set to meet in Qatar this month to discuss a deal, just a cap on output would have limited impact on prices because several participants are already pumping near record amounts of crude, Ole Hansen, the bank’s head of commodity strategy, said in an interview on Thursday. The rebalancing of the oil market amid a glut triggered by the U.S. shale boom hinges more on American drilling activity, he said.
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Oil investors looking for signs of a sustained price recovery would do well to assess U.S. supplies rather than the banter between major producers on freezing output, according to Saxo Bank A/S. While OPEC members and producers outside the group are set to meet in Qatar this month to discuss a deal, just a cap on output would have limited impact on prices because several participants are already pumping near record amounts of crude, Ole Hansen, the bank’s head of commodity strategy, said in an interview on Thursday. The rebalancing of the oil market amid a glut triggered by the U.S. shale boom hinges more on American drilling activity, he said.
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