OPEC+ meeting to offer no bullish surprise – CIBC

In the view of the analysts at the Canadian Imperial Bank of Commerce (CIBC), the outcome of the OPEC and its allies (OPEC+) meeting is unlikely to offer any upside surprise and therefore it could dampen the oil market sentiment.

Key Quotes:

“The reality is that the physical market is too tight to justify deeper cuts and we do not see anything in the fundamental data that would argue that a major negative inflection point is upon us and needs any acute action to be protected against.

Oil prices are headed higher in 12-18 months.

With each passing day we continue to see incremental data points that reinforce what we have been saying for some time. Namely, that U.S. crude supply growth is shaping up to sit well below the recent trend and arguably has more downside risk than upside risk at this time.”