While the latest dollar surge, which has pushed the DXY above 101 to the highest level in 13 years, will likely be a far greater factor for the price of oil than the now daily charade of optimistic statements by OPEC, it doesn’t mean OPEC, and assorted oil-exporting hangers on like Russia, won’t try.
As we reported in the past week, today Russian Energy Minister Alexander Novak was holding talks with OPEC ministers in Doha, in an attempt to “iron out” differences ahead of the Vienna meeting in two week’s time where OPEC is expected to finalize the terms of the production cut. And while Novak, who moments ago gave a statement to the press, said nothing new at all but merely reiterated the same tired talking points that algos have heard for weeks now as they push oil higher, it does appear that a production cut is the last thing on Russia’s mind, while a freeze may be on the table only if, however, the rest of OPEC can agree on the “supply cut” deal agreed upon in Algiers, which will be difficult considering virtually the entire cut will now be coming from Saudi Arabia.
In any case, here is the Reuters dump of of the day’s first set of OPEC headlines courtesy of the Russian energy minister.
Maybe the oil algos are still sleeping, but there has been no reaction from either WTI or Brent to the first headline dump; either that, or the pressure weighed down by the surging USD is proving too much for even flashing red headlines to overcome.