Crude Oil crashes with all eyes on OPEC meeting
01:00, 27 november 2014
· Av CMC Markets
With stock markets holding steady through the US Thanksgiving holiday, crude oil, as expected, has been the most active market for trading today.
Brent and WTI crude are both breaking down again today amid fears of a market share battle that could drive prices down even further. Demand has been falling due to slowing economies in Europe, China and Japan, yet of all the major oil producing countries (OPEC and non-OPEC), only Venezuela has shown any interest or willingness to cut production.
It’s still possible that OPEC members may agree to enforce current quotas but anything short of an actual quota reduction would likely be seen by the street as not doing enough to reduce a glut in supply.
The selloff in oil has put pressure on oil-sensitive currencies like CAD and NOK and could weigh on Canadian stocks today, particularly the Energy sector.
There are no major corporate developments today
Economic reports released overnight and this morning include:
Germany unemployment chnge (14K) vs street (1K)
Germany unemployment rate 6.6% vs street 6.7%
Germany consumer prices 0.6% vs previous 0.8%
Spain GDP 1.6% as expected
Spain consumer prices (0.4%) vs street (0.3%)
Economic reports due later today include:
TBA OPEC oil production decision