Oil Rose Ahead of OPEC Meeting at the End of the Week

Crude futures rose more than 1 percent on Monday as speculators took bullish bets on the odd likelihood of a surprise outcome at this week’s OPEC meeting and as refined oil products rallied.

Few traders and investors expect any material change to OPEC’s production policy when the Organization of the Petroleum Exporting Countries convenes in Vienna on Friday. Still, some were hedging for the possibility of a surprise.

“We’re seeing a bit of buying interest, with prices set to be pushed and prodded around by pre-OPEC meeting rhetoric,” said Matt Smith, director of commodities research at Clipper Data, a New York-based consultancy on energy markets data.

U.S. gasoline and ultralow sulfur diesel (ULSD) futures rallied as the front-month contracts in both headed for expiry.

ULSD, also known as heating oil, jumped 2 percent as colder weather enveloped the U.S. Northeast, the world’s largest market for the heating fuel.

via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza