ANZ - political turmoil easing, oil bid as OPEC continues talk up continuation of cuts

ANZ on oil today: "With the political turmoil easing in the U.S. overnight, the market will return to the fundamental drivers ... should see oil prices remain well bid, as OPEC continues to talk up a continuation of the production cut agreement"

And, more from ANZ:

• OPEC. The oil group meets on 25 May in Vienna
• The main point of discussion being whether to roll over the current production cut agreement.
• Saudi Arabia and Russia have already intimated they are ready to support such a move.
• However there is a possibility that it may be extended longer than expected (ie into 2018) or the cuts deepened.
• This should keep volatility high.

Oil has indeed been bid today. Expectations are that an agreement to extend production cuts will proceed. BoA / ML see the probability of a cut extension as high: