Market Report & Analysis for 11/29/17 Morning Edition
Morning Market Overview
Oil trading was volatile Monday as market participants seem to be starting to position their books ahead of Thursday’s OPEC meeting in Vienna. On an intraday basis the market started out the trading session strongly lower but was able to claw its way back into positive territory for the Brent and RBOB contacts.
WTI had an added boost last week versus everything else in the complex after TransCanada shut its Keystone pipeline. Still no restart date has been posted but TransCanada did indicate yesterday that the clean-up is going faster than expected. The market is likely interpreting that comment as a signal that the restart date may be coming soon. On the OPEC front the talk circulating around the media airwaves today focused mostly on concern that Russian support for the extension could be slipping.
However, there is also a view that OPEC & Russia are trying to lower the expectations ahead of the meeting, so the market does not get caught in a buy the rumor (accord extension) and sell the fact when the extension is announced. As suggested last week the oil media airwaves will be filled with OPEC comments until the meeting is over and the outcome announced. In this regard volatility… especially intraday volatility… will be above normal for the rest of the trading week. On the financial front global equity markets were mostly lower today.
The Index traded lower even with the US markets trading in positive territory throughout the US trading session. The EMI Index decreased by 0.29 percent with the year to date gain hovering around 19.1 percent. All ten bourses in the Index remain in positive territory for 2017. London is in the worst performing spot in the Index with Hong Kong still in the top spot with a 34.9 percent gain for the year.
The lower value direction in global equity markets was a negative price driver for the oil complex. On the currency front the US dollar Index traded higher for the day with the Yen/USD and the Euro/USD mixedr. Overall the currency markets were a negative price driver for the oil complex.