OANDA

OANDA - Oil futures commentary

News   •   Oct 11, 2016 01:58 +08

Please attribute the following commentary to Jeffrey Halley, senior market analyst at OANDA:

Oil backed of from its highs on Friday after a tumultuous week. The Russian Energy Minister Alexander Novak's comments, that no production cut deal would be signed at this week in Istanbul, exposed just how headline driven the market is and just how important it is to have Russia on board.

The same Minister did say there was a good chance of a deal being signed at the full OPEC meeting late November, which was completely ignored. Without Russia signing, be under no illusion that any sustained oil rally will be in jeopardy.

Brent has backed off its highs at 52.50 and WTI 50.50 to finish the week and into the Asia open. Expect both to remain under pressure in Asia today as a stronger USD keeps the heat on. A break of the New York lows may see some short term hot money look to lock in profits and run for the door marked "sell."

For direct comment, please contact Jeffrey Halley at:

e:jhalley@OANDA.com

t:+65 6579 8288 ext 212121