OIL PRICES

摘要

The slide in Brent came to a halt after Saudi Arabia signalled that OPEC and its allies would extend production cuts beyond June. A sudden escalation in trade tensions between the US and China saw the European benchmark of crudeoil lose more than US$10 per barrel overthe course of May. In addition, anxieties about the knock-on effects of a global economic slowdown on energy demand intensified last week after President Trump also announced tariffs against Mexico. The oil cartel may be able stem excesses in global supply caused by the ascendance of US shale production, which could act as a floor against further sharp price corrections. In addition, some support may come from supply outages and sanctions against countries like Venezuela and the implementation of IMO marine fuel sulphur regulation in 2020.