Oil: Market faces downward pressure – Commerzbank

Commerzbank Research Team notes a significant decline in Oil prices, with Brent trading down over USD 4 from last week's close. The report attributes the drop to geopolitical tensions and production adjustments from OPEC+. It notes that the outlook for oil supply may become more abundant as production targets remain unchanged, with key decisions expected in April.

Oil price outlook amid geopolitical tensions

"The oil market also started the week with sharp declines: while a barrel of Brent oil still cost more than USD 70 at the end of last week, it is currently trading at a good USD 4 less."

"OPEC+ producer countries with voluntary production cuts decided over the weekend to keep the agreed production targets unchanged in March. This came as no surprise and had been signalled by delegates in advance."

"This is because the agreement decision made in November not to further increase production targets is expiring at the end of March."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)