– Since the release of the planned OPEC production cut, oil rallied for three straight weeks and broke the $50 per barrel level with profit taking on Friday seeing price sitting at $49.49 per barrel.
– Details of how the cut would be implemented are yet to be agreed on and will only take place at the next Opec meeting on 30 November
– Informal meeting taking place with non-Opec members from Oct 9 – 13 to discuss how to implement such a deal
– Meanwhile in the news: BAGHDAD (Reuters) – Iraqi Oil Minister Jabar al-Luaibi has called on local and foreign companies operating in Iraq to continue increasing oil and natural gas output in 2017, the oil ministry said in a statement released on Sunday. Source Investing.com
– Strong sellers above $50. Price may struggle to remain above $50 until the terms of the agreement for the oil cut have been settled. Bottom of the range identified at $43 per barrel.
– Interesting that we see these comments coming out of Iraq at this strong level of resistance – possible attempt to drive oil prices down and prevent price from breaking $50 out of concern over US frackers?