MBCC Trading Highlights 3rd October'22 - OPEC is worried even though Oil is > 2020 levels, why? Is the Fed about to pivot?

Oil is up 4% today on back of OPEC+ talking about cutting 1 mln bpd of Oil as they fear of a demand slowdown. Strangely enough, prices are above pre covid 2020 levels and yet they seem to be panicking now? It is important to note that OPEC+ is actually producing way below their quotas, so is this cut more about optics or actual production cut?

Oil is bouncing here, how far can it rally or is this another sell on bounce opportunity?

We all know “supply” can be pulled back, but no one is assessing actual demand. We look at our cross asset forward looking models to pinpoint what demand will be and hence forecasting a surplus or a deficit in q4?

All this and more on all the talk about Fed pivot as rumours of a big bank is about to go under…our views and calls in the note today.