NOK remains vigilant on OPEC – Danske Bank

Chief Analyst at Danske Bank Jakob Christensen noted this week’s OPEC meeting to be a key driver for NOK in the near term.

Key Quotes

“On Wednesday, OPEC is set to meet to discuss a deal to limit oil output to support oil prices. We doubt that OPEC will be able to agree on anything that will have a substantial impact on oil prices”.

“Based on recent headlines, it seems probable that it will come to some sort of agreement on a small output cut. It may spur a temporary small rise in oil prices, which we believe will fade as the market realises that compliance within the cartel is not strong enough for a deal to survive”

“Lack of support to the oil market from OPEC along with a strong seasonal factor supports our view that EUR/NOK will stay supported towards the end of the year. We forecast EUR/NOK at 9.20 on 1M”.