Sudden 22% drop in crude prices

A month ago OPEC was on defense against rising oil prices ahead of the midterms and a squeeze due to Iran.

Saudi Arabia and its allies opened up the pumps to help balance the market. Since then, the US relented on Iran sanctions with a host of waivers and the bottom has fallen out from crude, including 10 straight days of declines to end the week.

That sets up a surprisingly important OPEC fathering this weekend in Abu Dhabi. It’s a lower-level meeting ahead of December’s ministerial meeting.

The WSJ cites a Saudi source who says that Russia could oppose curbs.

“‘Saudi Arabia realizes that there might
be a need to reverse course next year and wants to look at the options,’
said a senior Saudi official.”

The gathering will study various proposals and one would show that under current production levels (actual, not targeted) there would be a surplus of 1 million barrels per day in the first half of 2019.


Source link

Articles You May Like

Nasdaq turns positive on the day. USDJPY tests 200 hour MA
The US and China are talking on trade
Current level of rates appropriate for the ‘time being’
A look at some levels for the EURUSD and USDJPY into the employment report.

Leave a Reply

Your email address will not be published. Required fields are marked *