Soggy times for the loonie 30 Nov
Markets expecting a 9-mth extension to oil output cuts but the devil as always is in the detail and that we don't know as yet with the latest meeting just getting underway.
Currently 1.2897 from 1.2903 highs having failed to chew through all the offers I highlighted in the order board. More/stronger sell interest/res into 1.2920 which we last saw in late Oct
Oil prices still trying to make their mind up this morning but rallying sharply from session lows before capping again.
Comments pre-meeting that I posted were:
Saudi:
- my preference is for a 9month extension
- important to have consensus
- don't think we need to consider deeper cuts
- premature to talk of exit strategy
- exit will be gradual
- IEA is overly bearish on inventories
- we will look in June what we have done in H1 2018
UAE:
- 9 month extension is one option but need to look at others
Kuwait:
- supports extension til end-2018
