Saudis ready to support further OPEC output cuts

Saudis ready to support further OPEC output cuts

Saudi Arabia is likely to support extending OPEC output cuts into the second half of 2017, according to a person familiar with the kingdom’s internal discussions.

It’s not clear there has been a final decision on an extension, which would also depend on the positions of other OPEC members and Russia, the person says, asking not to be named because the talks are private. The rumour caused quite a rebound on oil. The WTI has broken above 53.00, an important resistance. The next move will depend on API report due later today 9:40 pm GMT. Let us recal that OPEC nations will meet May 25 in Vienna to discuss rolling over for another 6 months the output cuts first implemented in January. 

OIL Daily Chart

A break above 53.40 could be a bullish signal for oil. In such scenario a move towards 55.00 could be possible. source: xStation5


About Author

Our research team will provide all technical and fundamental news as well as all inside information coming from London's City desks to help investors trade fx and stock markets. Be sure that you already follow our twitter account @XMarketsuk in order to be up to date with all latest analysis, news and inside information.

Disclaimer: This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. X Markets and XSpot. do not take into account your personal investment objectives or financial situation. X Markets and XSpot. make no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any member of X Markets Websites’ team, a third party or otherwise. This material has not been prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of X Markets and XSpot. This communication must not be reproduced or further distributed without prior permission.

Risk Warning: Forex (FX) and Contracts for Difference (’CFDs’) are complex financial products that are traded on margin. Trading FX and CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, FX and CFDs may not be suitable for all investors because you may lose all your invested capital. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved taking into account your investment objectives and level of experience. Past performance of FX and CFDs is not a reliable indicator of future results. Most FX and CFDs have no set maturity date. Hence, a CFD position matures on the date you choose to close an existing open position. Seek independent advice.