Crude oil prices dropped by $2 a barrel on light volume after Saudi Arabia refused to attend a meeting with Non-OPEC members over the weekend. The Saudis, who thought they had a deal with Russia, seem to know that they are failing to do their part. The Russians are probably backing off a bit because they are looking at the consigns that Iraq and Iran is getting and they don’t want to do anymore of the heavy lifting.
Crude oil market action is weak as the U.S. dollar continues to soar and oil is still waiting on OPEC, which is just 5 days away from the big meeting and it is still unclear whether the old cartel can get its act together.
Oil prices rose on Tuesday to their highest this month as a growing consensus emerged in the market that OPEC would overcome internal disputes and skepticism to strike a deal that materially reduces crude output.
The deal may be all but done, but will it solve all the problems for U.S. energy and refiners? Crude oil prices continue their rally on reports of progress in OPEC production cut talks in Vienna. The latest sign that a deal is in the offing came when the Nigerian delegate Ibrahim Waya, a member of the Nigerian delegation, said, “It is likely everybody will be onboard by the end of the day.”
Wall Street looked set to open higher on Monday, with the three major indexes hovering near record levels, supported by higher crude oil prices and the lingering effects of the post-election rally. Oil prices rose about 2.8% to a near three-week high of $47.87 per barrel amid hopes of the OPEC reaching an agreement to cut output. The dollar index's .DXY first drop in 11 days also helped.
Buffy may have her way on slaying vampires, but she has nothing on Fed Chair Janet Yellen when it comes to killing commodities. Yellen’s testimony to Congress basically assured us that the Federal Open Market committee will raise rates in December as the economy is making significant progress.