OANDA - Oil futures commentary

News   •   Oct 27, 2016 01:27 +08

Please attribute the following commentary to Jeffrey Halley, senior market analyst at OANDA. For direct comment, call Jeffrey at +65 9457 1849 or email jhalley@oanda.com

Oil closed the week on a firmer note after comments from Saudi Arabia and Russia about possible production cut co-operation on Friday.This offset news that their joint nemesis, the US shale drillers, had increased rig counts yet again with WTI above $50 a barrel clearly being a magic number for an increasing number of them.Over the weekend the Venezuelan President and an Iranian spokesman both expressed confidence that a joint production cut deal between Open and Non-Opec producers was close.

Whether this optimism is well placed remains to be seen. However it should be enough to give Asian trading a firm start to the week. We expect WTI to move towards $51 a barrel with Brent regaining the $52 handle.