Jefferies is maintaining that negative supply side risks are more material than perceived demand risks.

Global investment banking firm Jefferies is maintaining that negative supply side risks are more material than perceived demand risks, Jason Gammel, the company’s equity analyst, has revealed.

“In particular, Iranian exports are under further pressure and Turkey has indicated that it is no longer importing Iranian crude,” Gammel said in a research note sent to Rigzone on Friday.

In the note, the Jefferies representative highlighted that Brent prices were down 6.6 percent this week as U.S.-China trade concerns were dominating the headlines. Bloomberg described the trade war on Friday as “rapidly escalating”.

Gammel also commented on the latest OPEC+ joint ministerial monitoring committee’s (JMMC) meeting in the research note, stating that it had “no concrete outcomes”.

“A move towards closer compliance to targets (vs 139 percent OPEC compliance in April) now seems the likely message from the June 25/26 OPEC+ meetings,” Gammel stated in the note.

Last week, Gammel said the OPEC+ JMMC meeting “should be uneventful” and outlined that any decisions would most likely be made at the OPEC+ meetings in June.

Jefferies is the largest independent full-service global investment banking firm headquartered in the U.S., according to the company’s website. The business has locations all over the world.