Oil & OPEC - A Slippery Slope

August 25, 2016 9:52AM CDT

Crude Oil sharply gained from the lows a couple of weeks back, and is now flirting with another break out.  Over the past week we’ve seen a tug a war between bulls and bears, with bears leading the race.

For several days oil prices had moved higher in response to reports that Iran would attend the next OPEC meeting.  This fueled speculation that Iran may take part in any coordinated action to prop up the oil market.

Talks for a production freeze with non-OPEC countries such as Russia earlier this year in Doha ended in failure after Saudi Arabia refused to participate in any deal without Iran. Iran choose not to attend the previous meeting and said it was not going to curb its production until they reach the before sanctions were placed on them by western countries.

In recent weeks OPEC producing countries including Venezuela have tried to renew interest in production cuts so they could get some relief to the disaster in their country.  Oil traders will be waiting for next month’s meeting in Algeria to see if OPEC or other countries producing oil will hint any production cut to increase the price of oil.

Oil Daily

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