Russia’s Novak offered a cryptic hint about what’s coming to the oil market next today, saying that OPEC+ will decide on future policy next week. That’s not something that was on the schedule but leaves the market uncertain of what’s to come. Initially the reaction was to sell out but it later rebounded and we’ve settled at the highs of the day.
In the bigger picture, it’s abundantly clear that the market is undersupplied and is drawing on inventories. Moreover, US commercial inventories are headed for a five-year low next month.
The next debate in the oil market will be whether a slowing global economy is enough to restrain oil prices but for now, the answer is an emphatic ‘no’.
WTI oil daily
As for today, the bulls pounded the close, leading to a $2.00 gain to $83.63, which is the highest since August 9.