FXStreet reports that strategists at ANZ Bank pulled back their short term target for Brent to $78/bbl.

“The new agreement allows for the 400kb/d increase to start in August 2021 until phasing out the 5.8mb/d production adjustment. The alliance will continue to hold monthly meetings at which it can adjust production according to market fundamentals.”

“OPEC’s ability to reach an agreement should dispel concerns that the alliance is at risk of breaking up. Its monthly reviews of the agreement should allow it to make adjustments should fundamentals shift. This will provide some stability to the market over the coming months. Nevertheless, the likelihood of prices surging higher over the next month or two has diminished. As such, we are pulling back our short term (0-3 month) target for Brent crude to $78/bbl.”