OANDA - Oil futures commentary

News   •   Nov 16, 2016 23:31 +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 has its election day lows in the rear view mirror, as the US Dollar reigns supreme across global FX and Commodity markets. Attention is slowly turning back to OPEC on November 30th and whether they and Russia can get some semblance of a deal over the line.

Both OPEC and Russia must be eyeing the current levels with some trepidation, especially as the street believes a President Trump will make it easier, not harder, for America's energy industry to produce more oil. Perversely though, the lower oil goes, the greater the chances are of deal. The Finance Ministers of oil producers will be watching the hole below the water line of their national budgets grow bigger and bigger.

After a roller coaster week, I expect Asia to catch its breath today. Brent has support at $43.50 and WTI at $42.90, the election day lows.