While the headlines paint an optimistic picture of the ongoing negotiations to cut output and reduce the crude oil supply glut, tensions remain high ahead of next week’s meeting in Vienna. Although Nigeria and Libya have been allegedly granted exemptions under the terms of the deal, other countries are vying for similar treatment. Iraq in particular has argued that its war against IS requires additional financing that should excuse the country from any production cuts or output freeze. Iran is taking a similar line as it tries to spur a recovery in output to levels that were reached before the implementation of sanctions. In the meantime, inventory data reported by API late in session saw bigger than anticipated gasoline builds, sending oil prices lower after the revelations about the positions of Iran and Iraq.
Oil Deal Stumbling Blocks Remain
Daily Analysis - 23/11/2016