Oil keeps hurting NOK – Danske Bank

Senior Analyst at Danske Bank Mikael Milhoj noted NOK remains under pressure amidst increasing weakness around crude oil prices.

Key Quotes

“In the Scandies, the free fall in oil prices has hit the NOK”.

“The price of Brent crude has fallen to USD47/bl, triggering a surge in EUR/NOK to above 9.57”.

“We still find it more likely that OPEC will extend output cuts and deliver some support to oil prices and the NOK. However, it is unlikely this decision will be made in the next three weeks, as OPEC is set to meet on 25 May”.

“Until then, bearish sentiment in the oil market looks set to prevail and possibly continue to dominate strong NOK domestic factors”.