Is crude oil settling into a new low range or is the market taking a breather before an extension lower? Saxo Bank’s head of commodity strategy Ole Hansen takes a closer look.

US inventory data is due to be published later on Wednesday and there are market concerns that the oil supply is not being reduced quickly enough, he says.

The Opec deal could fall apart if the production cut period agreed by Opec members and some non-members extends, warns Hansen, and that non-Opec producers such as Russia and Iraq do not comply fully to agreements made in late 2016.