OANDA - Oil futures commentary

News   •   Oct 27, 2016 01:30 +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 was again buffeted back and forth in a noisy range last night as a lack of any concrete news saw the market fitting whatever 2nd tier news did come out to the price action.

Iraq wants to be excluded from production cuts got a lot of airplay, but my understanding was that they were always one of the countries excluded from the original deal along with Nigeria and Libya. Expect more of this choppy interplay until more concrete news emerges, as speculative buying runs into record producer selling of the futures contracts for hedging.

Tonight's US API weekly crude stocks number will be closely watched. It has consistently surprised to the downside recently and a sudden increase would leave WTI vulnerable.

WTI is trading just below $50 this morning with Brent hovering around $51.30. Expecting choppy range trading in Asia today, with a headline driven market meaning traders need to be quick and nimble from their news feeds, or have very deep pockets.