Crude oil prices remain under pressure ahead of OPEC meeting

Wednesday, November 26, 2014

Saudi Arabia oil minister Ali al-Naimi met with officials from Russia, Venezuela and Mexico in Vienna yesterday ahead of the OPEC meeting on Thursday to discuss production cuts. However, the meeting with major non-OPEC oil exporters ended with no deal on curbing production, despite that the four countries agreed that crude oil prices below $80 per barrel “were not good”. In the meantime, Russia has been already pressuring OPEC to reduce oil production, offering to give up 300,000 bpd of its own output. Following the latest updates, it seems that Saudi Arabia do not want a production cut, despite that crude oil prices have plunged nearly 30% since June 2014. WTI front month futures remained under pressure trading near $73.50 per barrel.

WTI front month futures plunge towards $73/barrel

CLF5 Comdty (WTI CRUDE FUTURE  J 2014-11-26 08-42-53

Brent front month futures have retreated more than $30 since June 2014

COF5 Comdty (BRENT CRUDE FUTR  J 2014-11-26 08-43-27

The European equity markets edged higher in early trade this morning. In Hong Kong, the Hang Seng index rallied more than 250 points (+1.12%) above 24,110, while the Nikkei index slid slightly lower (-0.14%) to finish at 17,383.

Hang Seng Index

HSI Index (Hong Kong Hang Seng I 2014-11-26 08-46-46

The main focus will turn to key macroeconomic indicators including UK GDP data as well as US durable goods, new home and pending home sales figures in October, Chicago PMI and University of Michigan survey in November. Please note, the US markets will be closed tomorrow for Thanksgiving.  

USD index reversed and slid lower after testing a recent high at 88.44

DXY Curncy (DOLLAR INDEX SPOT)  2014-11-26 08-48-31

 

Events for today:

 

0930

UK

Q3

GDP

0930

UK

Q3

Imports/Exports

1330

US

w/e

Jobless Claims

1330

US

Oct

Durable Goods & New Orders

1330

US

Oct

PCE & Personal Income

1445

US

Nov

Chicago PMI

1455

US

Nov

University of Michigan Survey

1500

US

Oct

New Homes

1500

US

Oct

Pending Home Sales

1530

US

w/e

EIA Energy Stocks

 

All times UK Local Time

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