ROPEC (Russia,OPEC) consensus seen at 9-month extension on cuts

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.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Ed Moya

Ed Moya

Senior Market Analyst - The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a market analyst with OANDA, producing up-to-the-minute fundamental analysis of geopolitical events and monetary policies around the world. Over the course of his career, he has worked with some of the world’s leading forex brokerages and research departments including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including BNN, CNBC and Bloomberg, and is often quoted in leading publications including the Wall Street Journal and the Washington Post. He holds a BA in Economics from Rutgers University.
Ed Moya