FXStreet reports that according to analysts at TD Securities the reduction of 600k barrels per day in production recommended by the OPEC technical committee is thought to be seen as an exaggeration by Russia, and oil market is expected to be under strain in the next days.

“Headlines from Russian Minister of Energy Novak stating there are no signs Chinese demand for Russian oil and gas is falling, and noting only a 150-200k bpd hit to global demand, suggests Russia is still reluctant.” 

“We can expect an answer from Russia in the coming days, and in the meantime the oil market is likely to remain under pressure as fears of large surpluses loom large.” 

“CTAs remain sellers of Brent but have reversed course on RBOB gasoline selling, turning into buyers on the day and seeing the product outperform the complex this morning.” 

“We note gasoline is trading in whipsaw territory as the bar is razor thin for gasoline buying to flip back to major selling below $1.47/gal.”

• Uncertainties in oil production persist in Libya, Iran and Venezuela
• U.S. oil production is seen rising by less than 1 mln bpd in 2020
• Have no information on restrictions on Russian oil and gas supplies to China