Oil managed a tepid bounce in New York trading as Saudi rhetoric about cutting OPEC production by 4 % put a temporary floor under WTI and Brent.
With both Iraq and Iran saying they won’t be part of the cuts for various reasons, and Russia talking freezes not production cuts, the onus will fall on Saudi Arabia to pull any deal together. OPEC’s November 30th meeting suddenly seems like a long way away with seemingly half of the group wanting exemptions now.
The dead cat bounce appears to have run out of steam in early Asia with WTI drifting just below $49.50 a barrel. Support is around $48.50. Brent has regained $50.00 a barrel, but a break of $49.50 opens up more pain for bulls as the week comes to a close.