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OANDA - Oil Futures Commentary

News   •   Nov 30, 2016 01:24 +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 managed to regain part of Friday's losses overnight, with both WTI and Brent gaining over 2%. This, despite OPEC not being able to cobble a coherent deal together for Wednesday's ministerial meeting in Vienna. Price action has understandably been very choppy.

Clearly there are plenty of traders around who feel that OPEC will pull the proverbial rabbit from the hat at the last minute. WTI is trading at $46.40 a barrel and Brent at $47.60 a barrel in rather nervous early Asia trading.

Whether OPEC manages to make black gold instead of fools gold from its ongoing negotiations, we expect intra-day volatility to ratchet higher again into tomorrow, with price action being entirely headline driven.