FXStreet reports that economists at ANZ Bank have raised their short-term (0-3m) target to $85/bbl.

“Amid strong demand, no additional supply from OPEC in August would see crude oil markets tighten. However, a lack of unity in the group presents a real risk over the medium-term.”

“It appears the current production cuts will remain. Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, seemed to confirm this after the talks broke down, when he said the current deal (5.7mb/d of cuts) would stay. This is likely to tighten the market.” 

“As demand has improved, inventories have been falling sharply. We estimate this drawdown could end up being as large as 1.9mb/d in Q3, assuming there are no increases in supply before October. No doubt tightness will continue to raise prices in the short term. We have subsequently raised our short-term (0-3m) target to $85/bbl.”