The market’s initial response to the U.S. presidential election debate overnight was a clear sigh of relief. The Mexican peso, which had hit a record low against the dollar just the day before, surged higher, as too did the Canadian dollar, Japanese yen and global stock index futures. However most of those moves have already reversed as traders were quick to take profit, knowing full well that a TV debate may not necessarily affect the outcome of the actual votes in a meaningful way, especially those of the die-hard supporters of Trump and Clinton.
Talks between Saudi Arabia and Iran had not gone well as the Iranians seemed intent on raising output to 5 million barrels a day and the Saudis wanted to have independent verification of oil output to make sure there was no cheating.
Saudi Arabia has offered to reduce oil production if rival Iran agrees to cap its own output this year, in a major compromise ahead of talks in Algeria next week, four sources familiar with the discussions told Reuters.
The price of crude oil has been caught in one of its most volatile couple of weeks in months after Oragnization of the Petroleum Exporting Countries (OPEC) and rival Russia hinted they may discuss a possible output freeze, as demand slows and a global surplus becomes more entrenched.
Iran's steep oil output growth has stalled in the past three months, new data showed, suggesting Tehran might be struggling to fulfill its plans to raise production to new highs while demanding to be excluded from any OPEC deals on supply curbs.
German exports to Iran, mostly machines and equipment, jumped in the first half of the year following the removal of international sanctions against the Islamic Republic, official trade data showed today.
There are some that are laughing off the possibility of a production freeze because of the failure at Doha in April, but one must not just dismiss it. A deal at Doha was closer than anyone imagined and there is a possibility that they can put those pieces back together.
Crude oil prices fell to their lowest levels since April today, with Brent on track for its biggest monthly loss since December 2015, pressured by slowing economic growth that threatened to increase a supply overhang of crude and refined products.