OPEC may be upstaged by the G-20 this weekend in terms of influence on oil prices
2019-06-28 07:52:58 source：CNBC
June 27, 2019
OPEC ministers meet Monday, but this weekend’s G-20 leaders summit could have much more impact on oil prices, depending on whether the outcome is good or bad for the global economy — and therefore oil demand.
The world’s markets are focused on Saturday’s meeting between President Donald Trump and China’s President Xi Jinping to see if the two will agree to some type of trade truce and continue negotiations towards a broader deal. In the oil market, the trade wars have taken a toll on end demand in important markets like Europe and Asia, and that dynamic has helped hold down prices even as tensions between the U.S. and Iran flare up.
“The meeting that really counts is the meeting at the G-20,” said Daniel Yergin, vice chairman of IHS Markit. “The question is why is demand growth weaker this year than previous years... we show demand this year growing at 1.1 million barrels a day. We see U.S.[production] growth up by 1.5 million barrels a day.”
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