Oil analysis from Societe General:
“Tensions in the Middle East between Saudi Arabia and Iran, the threat of a
nuclear test by North Korea, weak China PMI and the PBoC accelerating the yuan
depreciation are all undermining market risk appetite. This puts the commodity
complex under pressure. Our latest ‘Oil Drivers: There will be blood’
underscores the huge global oversupply situation and the current overwhelmingly
bearish sentiment.