Oil fell to its lowest close for weeks on Monday, even as a ~1% fall by the $US pushed the likes of gold and copper higher. In a surprise move overnight that sent oil prices tumbling, Saudi/Russia-led OPEC announced they would go ahead with an increase of 138,000 barrels of oil a day in April, the first such move in two years. The move is another illustration of the “sway of Trump”, who wants/needs oil prices lower to offset any hike to inflation by his tariffs and other economic stimulus.
- We see no reason to second-guess when oil prices will bottom, with Trump keen to depress energy prices.
MM is neutral toward crude oil
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