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27 Nov 2014
Oil prices to fall lower if OPEC decides against cutting targets – TDS
FXStreet (Barcelona) - Analysts at TDS see Oil prices taking a dip lower and continuing the negative trend in the coming weeks in case the oil producing cartel decides not to cut targets.
Key Quotes
“There is no clear underlying driver of price action during the Asian session, but investors will be closely monitoring the outcome of today’s OPEC meeting that is scheduled to begin at 9am GMT.”
“The opening session of the 166th OPEC meeting commences this morning. We will get the official communique which will include the decision on forward OPEC production and export targets. However, there will be lots of leaks and rumours before the official press conference scheduled later in the day.”
“Our base case scenario is predicated on the expectation that OPEC will announce a cut in output, but the extent of which will likely not be enough to significantly reduce loose balances, while enforcing these targets is another matter itself.”
“We look for a cut in the range of 500 kbbld - 1.0 MMbbld, a symbolic cut but one that falls short of volumes required to balance this market. In the event that the oil producing cartel decides not to cut targets, we will likely see prices drop immediately and continue to trend lower in the coming weeks.”
Key Quotes
“There is no clear underlying driver of price action during the Asian session, but investors will be closely monitoring the outcome of today’s OPEC meeting that is scheduled to begin at 9am GMT.”
“The opening session of the 166th OPEC meeting commences this morning. We will get the official communique which will include the decision on forward OPEC production and export targets. However, there will be lots of leaks and rumours before the official press conference scheduled later in the day.”
“Our base case scenario is predicated on the expectation that OPEC will announce a cut in output, but the extent of which will likely not be enough to significantly reduce loose balances, while enforcing these targets is another matter itself.”
“We look for a cut in the range of 500 kbbld - 1.0 MMbbld, a symbolic cut but one that falls short of volumes required to balance this market. In the event that the oil producing cartel decides not to cut targets, we will likely see prices drop immediately and continue to trend lower in the coming weeks.”