Crude finished on a grim note on Friday, with Saudi Arabia saying it could steadily raise production if necessary. A none too subtle negotiating tactic to bring Iran and Russia back “on message”. Brazil also announced record oil production for September underscoring just how difficult agreeing an accord between Open and non-OPEC will be.
Monday dawns brighter though, with WTI futures trading higher in early Asia on a Clinton boost, as the FBI cleared her of any miscreance. Algeria also weighed in over the weekend saying they are confident OPEC will put something together on November 20, 2016.
The WTI has picked itself up off the floor for now, trading up to $44.40 a barrel. Support lies around $43.00 mark on the 200-day moving average.
Brent had a terrible finish on Friday, closing under its 200-day moving average at 44.86. Resistance will be around this level when it opens and the key will be how long the Clinton and OPEC rhetoric afterglow lasts. The cynic in me says reality will bite sooner rather then later.