Oil prices gained more than two percent on Monday in volatile trading after falling as much as two percent, recouping losses as the market reacted to the shaky prospect of major producers being able to agree output cuts at a meeting on Wednesday.
Brent crude futures LCOc1 were $1.10 higher at $48.34 per barrel by 1410 GMT (9:10 a.m. ET), after falling in early morning trade, clawing back losses and falling again.
U.S. West Texas Intermediate (WTI) crude futures CLc1 also fluctuated widely before trading $1.10 higher at $47.16.
Trading turned choppy after prices tumbled more than 3 percent on Friday as doubts grew over whether the Organization of the Petroleum Exporting Countries would reach agreement to help curb a global supply overhang that has more than halved prices since 2014.
Market watchers expected prices to remain volatile until OPEC’s Wednesday meeting offers the market a definitive answer as to whether OPEC and non-OPEC producers can agree cuts.
“There’s going to be speculation until the meeting that makes prices very difficult to predict between now and Wednesday,” said Hamza Khan, head of commodities strategy at ING. “Whatever small fundamental news we get will be drowned out by the shouting from Vienna.”
via Reuters
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Latest posts by Alfonso Esparza (see all)
- Market Rally Still Going Low Holiday Volumes Awaiting Start of 2020 - 27 December 2019
- Market Awaits China Retaliation on Trade - 29 November 2019
- Alibaba to Close Order Book Ahead of Huge IPO - 18 November 2019