OPEC “Optimism” Sparks Sudden Oil Spike

Following news over the weekend of cancelled meetings, Saudi dropping out, and disagreement over who will bear the brunt of any cuts, oil prices had faded notably (testing towards a $44 handle). But then, someone unleashed the algo-friendly ‘O’ word (just as we had warned) and prices spiked… Iraq’s Oil Minister Jabbar al-Luaibi is optimistic a deal will be reached – sending WTOI up close to $47 and into the green from Friday’s close.
Here is what we said an hour again…
with sentiment weighing on oil prices this morning, expect a spike in “optimistic” sounding flashing red headlines, which will likely prompt another short squeeze and lead to a green close in crude. and then… Futures rose as much as 1.5 percent, reversing an earlier decline. Iraq’s Oil Minister Jabbar al-Luaibi is optimistic a deal will be reached, he said Monday in Vienna

This post was published at Zero Hedge on Nov 28, 2016.