Negotiations between REPRESENTATIVES of OPEC countries lasted for six hours. What’s the result? No. The media every now and then throws information that OPEC has agreed to an additional reduction in production by 500,000 barrels per day. It is then reported that no agreement has been reached. Hence the weak movements in the market. The market needs clear signals. And they’re not there yet. And it’s good that oil doesn’t jump from different injections. We will wait and understand the details.
After a lengthy meeting, Saudi Arabia’s energy minister told the press that good news was expected on Friday. That is today.
Today will be the meeting of OPEC. Recall that Russia, the second country in terms of oil production, is not part of OPEC. And in fact, the dialogue with Russia will take place today. Our Government’s position is to eliminate gas condensate from the quota. Energy Minister Novak laments that Russia does not meet quotas precisely because condensate sits in these quotas. Perhaps OPEC has prepared some kind of proposal, which is “good news”.
Is it important or not? No.
It is important to understand that the change in production volumes and the timing of the OPEC-OPEC deal can provoke movements on oil. And something tells me that the additional reduction of 500,000 barrels per day. this is not the volume that can provoke the growth of oil quotes. Will the OPEC-OPEC agreement be extended? If so, it is a positive for oil, and it can also pull the quotes up. However, it is unlikely to be talked about today. I believe that this dialogue will be left for spring 2020.
In total, it turns out that today the market can be left without important news. Let’s twitch, shake, but most likely we will be left without trend-forming events, and therefore, in the side.
Maybe of course everything will change, as it was at the end of last year. But this is an exception rather than a rule. So we assume that movements without news can appear, but I would not count on them.
Trading ideas for today in such tools as, ,, ,,,,,,, ,, , , and, and, disassembled in a fresh morning briefing: