Please attribute the following commentary to Jeffrey Halley, senior market analyst at OANDA
Oil has been treading water overnight, with both Brent and WTI finishing 1% down for the New York session.
Although more noise came out of Istanbul about meetings between OPEC and Non-Opec members to thrash out a production cap, the street preferred to concentrate on less bullish comments. Firstly the head of Russia’s largest oil producer, Rosneft, said they wouldn’t participate in a production cut. Then the International Energy Agency, (IEA), once again downgraded its oil demand forecasts. It then followed up with a rabbit punch to OPEC, saying that increasing production from exempt members would offset any headline OPEC cut.
This is saw Brent drift back to 51.70 before settling 52.10. WTI hit a brick wall above 51.00 before settling at 50.50.
With the IEA still making bearish noises on oil demand and warning about global debt a la the IMF, and ahead of crude inventory figures due in the States, expect crude to make heavy going to the topside in the first half of the week.
Contact Jeffrey Halley at: