With OPEC meeting with Russia in Istanbul last week to discuss a potential reduction in production levels, WTI oil was trading at the USD 51/barrel level.
Among the news items that caught our attention:
- Pierre Andurand, one of the best commodity fund managers, sees oil reaching USD 60/barrel in the next three months and USD 70/barrel in 2017 as OPEC is discussing possible production cuts production to balance the market.
- The next OPEC meeting will be held on October 29 in Vienna. Russia has expressed an interest in participating in an agreement with OPEC in order to cut production. The producing countries hope to reach an agreement, but the commitments of individual OPEC members still need to be discussed.
- According to the U.S. Department of Energy, oil stocks at Cushing, Oklahoma fell 1.3 million barrels in the week ending October 7, 2016. This was one of the lowest levels since December, and the news drove up the value of oil.
- Oil began to flow to export from Kashagan, an oil field in the Caspian Sea, after 16 years of development and over $50 billion of investment.
Given the current market conditions, we are encouraging our clients to contact us to plan their fuel hedges in CAD/litre.
