Post-Doha, Oil Prices Could Find Support In Mid-$30/bbl Range: RBC

Though the initial post-Doha knee-jerk reaction of pushing oil prices lower was anticipated, analysts at RBC expect oil prices to find support in the mid-$30/bbl range, considering an otherwise improving fundamental backdrop. Helima Croft and team said in their April 18 research note titled “OPEC Watch List: Post Doha – Go Your Own Way” that with the Doha meeting ending in a bust, the pain is expected to deepen for the vast majority of sovereign producers.

Oil prices should find support near mid-$30/bbl range

Croft and colleagues note the failure of the OPEC/non-OPEC meeting to result in a collective freeze has shown that sovereign producers are aiming to get their own way, especially Saudi Arabia. The analysts point out that during Sunday’s much-anticipated meeting...