Oil set for a bullish open as Saudi Arabia ices output increase hopes

Joshua Gibson FXStreet

Energy markets are likely to see price pressures on the rise at the outset of the new week in commodities, with Saudi Arabis delivering a shot across the bow of the US' President Donald Trump at the latest OPEC meeting, with the global oil mafia unlikely to begin lifting production caps in the near- to medium-term, a step in the complete opposite direction that was recently demanded by the US president via Twitter recently, who demanded that OPEC "do something" about oil prices, which see upside pressure mounting thanks to the US' planned sanctions against Iran due in November.

Key highlights

Saudi Arabia's oil minister expects oil supplies to once again outstrip demand sometime in 2019.

Saudi Arabia will do "whatever is necessary" to balance oil markets in the future.

OPEC production quotas aren't being met, odds of a limit increase in the near future are slim as countries struggle to hit the current ceiling.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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