The stage is set for tomorrow’s 6th OPEC and non-OPEC Ministerial Meeting. Oil is higher as Russia signaled that all ministers support a nine-month extension to production cuts. If you are an oil bull and have followed OPEC meetings before, you will wait before opening up a bottle of champagne. Tomorrow, the 24 oil producing countries are expected to confirm today’s findings:
- Production cuts should be extended at least till end of year, with the best case scenario seeing an extension into the first quarter of 2020.
- Iran will hold off on insisting to have anti-sanction language.
A big part of the crude equation will fall on global demand. Today’s wrath of weaker than expected PMI data globally should cap further gains with oil prices today. If the US ISM reading disappoints and falls to contraction, we could see oil prices attempt to fill the weekend gap.
The Canadian dollar is slightly lower to the greenback in early trade. Major support remains the 1.3000 handle.
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