Oil Firms Ahead of Algiers OPEC Meeting That May Set Stage for Q4
Fundamental Forecast for <USOIL>: Bullish FUNDAMENTAL CRUDE OIL PRICE TALKING POINTS: The ONE Thing: The OPEC meeting with allies in Algiers is expected to focus on production gains as Iranian sanctions and depletion rates in Venezuela look to force the hand of OPEC. Reuters reported on Friday that the likely increase would be around 500k barrels per day. The correlation between WTI and Brent crude contracts have fallen to the lowest since 2014 as supply pressure in Brent regions and perceived oversupply in WTI from US E&P cause the market to diverge in favor of Brent. Per BHI, U.S. total rig count falls 2 to 1053; US Oil rigs fall by 1 to 866 The technical picture for Brent has a keen focus on $80/bbl. A breakout above this level would align with the technically bullish momentum backdrop seen through Ichimoku and MACD. Such a breakout could see a new range in Brent toward $80-$90/bbl. Crude has benefited mightily from a combination...
