Oil: Kuwait strike a big factor in the changing tune – Deutsche Bank

Research Team at Deutsche Bank, notes that the oil has been the main focus over the last 24 hours here in the real world.

Key Quotes

“Having initially opened over 7% lower yesterday in Asia and crashing below $38/bbl, prices swiftly reversed over the course of the day and came close to wiping out the entire early loss, before settling a shade under $40/bbl and down ‘just’ -1.44% on the day. That meant WTI rose nearly $2.50 from the early low mark, while Brent also swung around to the tune of nearly $3 during the session.

The Kuwait strike news which we highlighted yesterday was cited as a big factor in the changing tune and it appears that the strike is set to continue into today, although it feels like the ‘big if’ for markets now will be the duration of the strike and how much Kuwait can compensate some of that lost production elsewhere to get back closer to normal levels. Oil is fairly flat overnight and hovering just below $40.”