+357 25 105 641
  • Facebook
  • YouTube
Oil price in wild swings
Published on 26.10.2016 22:38

The Oil price experienced significant volatility today before pushing lower over worries that OPEC members will stick to the agreed output deal they brokered.

Initially today, crude oil broke down through the $49 mark after a report from the American Petroleum Association that showed crude oil reserves jumped 4.8 million barrels last week,

Later in the day the commodity rebounded back through the $50 after a surprise announcement from the US energy Administration that showed crude stockpiles fell 553,000 barrels last week against analysts’ expectations for a 1.7 million barrel rise.

Towards the end of the trading session however the price again reversed, after doubts began to emerge about some OPEC members such as Iran and Nigeria who analysts believe will refuse to back the expected decision to freeze output when the cartel meets in Vienna on November 30th.

If a deal is not reached there is a potential for a sharp fall in the oil price so all eyes are on next month’s meeting,

"The focus point from here remains on the OPEC meeting that comes a month from now, with Iran, Libya and Nigeria all looking unlikely to commit to output cuts," said Tariq Zahir, crude trader and fund manager at Tyche Capital Advisors in New York.

The material published in on this page is produced by the FIBO group companies, and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Andrew Masters

Analyst

The power of leverage is the power of Forex.
×

Risk warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, your level of experience and preparation of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.

Important notice
By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Click "Cancel" to remain on this page.