OANDA - Oil futures commentary

News   •   Nov 23, 2016 23:50 +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.

Brent and WTI both leapt nearly 6% overnight, as news that representatives of Saudi Arabia and Russia will meet in Doha, which prompted a massive short covering rally. With OPEC production at record highs, meaning any cut has to get bigger by the day, any news that this mountain can be climbed by November 30th is seized upon.

With fast money flows dominating so many other markets at the moment it is no surprise that it was oil's turn. WTI held $42.60 a barrel support before leaping to $45.70; Brent climbed above $46.00. $42.60 is now the line in the sand for technical traders.

Expect Asia to open in a similarly optimistic fashion today. Going forward, we can expect more of this intra-day volatility over the next two weeks. Driven by fast money "will they, wont they" headline trading. Traders should make sure their seat belts are very securely fastened and their tray tables stowed, for the November 30th turbulence ahead.