Pretty good week for the oil price
|WTI $46.32 +98c, Brent $47.65 +82c, Diff -$1.33 -16c, NG $2.99 -7c
It’s good to be back after an incredibly exciting, informative and whirlwind visit to Colombia which I will write up in more detailed reports in the next few days. Apart from today's news I shall attempt to make brief comments on this week's events and will expect admonition for what I may have missed.
The oil price has had a pretty good week without blowing the doors off, it is noticeable that WTI has had a better week than Brent, probably on the back of the inventory stats which showed good draws and still significant demand for gasoline. Combine that with the dovish news from the Fed which led to a weaker greenback and equities and commodities celebrated by going to a more risk-off stance.
Beware of such hedonism as next week we shall see the ‘Opec’ meeting as it is being called in all polite circles, the meeting in Algeria is unlikely to meet the bull’s expectations and is more likely to be a letdown. At best expect a holding announcement ahead of the next real meeting of Opec on November 30th. At worst……..
This morning has seen some giving back of the strength as traders are appropriately cautious of going into said meeting overly long crude but having said that, after the Doha debacle the oil price actually went up…
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