Crude oil remained depressed in recent sessions on skepticism over OPEC’s commitment to freeze production as the energy market suffers from a global supply glut.
Anticipating OPEC will announce and implement a production cut, Goldman Sachs raised its forecast for oil prices in the first half of 2017. A Bank of America Merrill Lynch research note also anticipates a supply cut is highly likely.
Nevertheless, oil traders remain wary of speculations as they have been burned before, and any further shifts in expectations could add to price volatility before the meeting, especially with the holiday week and lower trading activity.
”Their track record is horrendous,” Mark Waggoner, president of Excel Futures, told the WSJ. “Somebody makes another statement, things could change.”
For more information on the crude oil market, visit our oil category.
United States Oil Fund