WTI and RBOB are plunging following comments from the Saudi minister that "he doesn't know" if November meeting will agree on a production cut deal extension, and Russia's Novak confirmed that there is "no clarity" on a deal extension.
Saudi Arabia will work with Russia to reach a consensus in the next few weeks before the Nov. 30 OPEC/non-OPEC meeting in Vienna, Saudi Energy Minister Khalid Al-Falih says at a meeting with Russian counterpart Alexander Novak in Moscow.
OPEC and non-OPEC producers will discuss “what to do beyond March” at that meeting: Al-Falih
Both ministers say it’s too early to say whether or not the November meeting will yield an agreement to extend the production cuts
Amid higher OPEC production and the prompt return of supplies from Libya, futures prices are under pressure.
After last week's surprise rise (+6) in the rig count, the US Oil rig count declined by 2 this week to 748...
Technically, WTI just plunged below its 200DMA ($49.53) for the first time since September...
There was a feeling that some refiners could be shut but as the forecast for Nate shifts to the East, it doesn’t seem as though many refineries will be affected as it shifts “away from generally the bulk of production, so you have the corresponding pull-back here,” according to Bob Yawger, director of the futures division at Mizuho Securities USA.
Saudi Energy Minister Khalid Al-Falih concluded: “Our job is not done and there are still uncertainties and headwinds in global oil markets. We have to keep our eyes clearly on the road” to proceed with rebalancing the market.