OANDA - Oil Futures Commentary

News   •   Nov 30, 2016 01:22 +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 futures open lower in Asia this morning continuing Friday's price action. Opec's multitude of moving arts ahead of this Wednesday's Vienna meeting deadline, seem to be in serious need of lubrication themselves, as members and non members positions appear to be moving further apart.

Saudi has suggested oil demand will recover on its own in 2017 now whilst Russia still talks production freeze, not cut, from its side. Iran and Iraq still insist on being allowed a larger slice of the pie. With so many toys being thrown out of their prams now in oil quota tantrums, its hard to see who will pick them all up by Wednesdays deadline.

Diplomats would call these "negotiating positions" but the market doesn't take the same view. WTI and Brent both dropping 4% on Friday and opening lower again in early trade in Asia. WTI is testing support at $44.50 with Brent just above support at $46.20.