Oil climbs to a fresh one-year high as OPEC committee meets

The extension continues

The extension continues

The break of the oil range has continued today with WTI at the highs of the day and up 62-cents to $55.39.

The measured target of the range break is $56.

The JMMC is meeting has just begun and if they were being honest, I could see them starting to reverse policy on a better demand outlook. However I don’t see any incentive for them to change it up with the climb in oil prices far outpacing whatever they’re losing by holding back production. The consensus is that they won’t recommend any adjustments to policy.

The other thing to watch in oil will be the US weekly report at 1530 GMT (10:30 am ET). The consensus is a -2300K reading on oil but the API numbers late yesterday were bullish:

Crude -4261KCushing -1885K
Gasoline -240K
Distillates -1622K

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