Just when you thought the February through April recurring headline nightmare is over, in which an “unnamed source” repeatedly promised that an OPEC oil output freeze is imminent, it has come back to life just hours ahead of the OPEC meeting.
- OPEC MAY CONSIDER NEW OIL OUTPUT CEILING AT THURS MTG: RTRS
- REUTERS CITES 4 OPEC SOURCES ON NEW CEILING CONSIDERATION
The “sources” no longer even bother including Russia as being part of the deliberations for one simple reason: Russia will not only not be present in Vienna, but is no longer seeking a freeze in global output because prices have risen close to $50 a barrel without one.
So while there is nothing new here at all, the algos love it and bid WTI back up to $49.
Most likely next step: a denial from other “sources”, although probably not before the actualy meeting takes place. Expect more of this folly until the statement on Thursday. And ironically, the idea of a ceiling on production is occurring at near-record levels of output and PMIs worldwide flashing red.
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