- Crude oil prices rallied after the Iraqi oil minister said OPEC and its partners were considering extending or even deepening current production cuts.
- WTI crude settled at its best level since May, +1.9% to $50.41/bbl, while Brent popped +2.1% to $56.29/bbl, highest in more than six months.
- Minister Jabar al-Luaibi says some oil producers think the supply agreement should be extended for 3-4 months, some want it to run until year-end 2018, while others, including Iraq, prefer another round of supply cuts.
- Prices also likely enjoyed an extra boost from Pres. Trump's disparaging remarks about the Iran nuclear deal.
- The move occurred despite a much bigger than expected increase in U.S. crude inventories, with higher domestic production “quite a surprise” in the wake of Hurricane Harvey, according to Tariq Zahir of Tyche Capital Advisors. “Shale [output] has shown how fast it can come back online.”
- ETFs: USO, OIL, UWT, UCO, DWT, SCO, BNO, DBO, UGA, DTO, USL, DNO, OLO, SZO, OLEM, OILK, WTIU, OILX, WTID, USOI
- Now read: Elroy's Elliott Wave Weekly: September 18
Original article