“Geopolitical risk to barrels from Nigeria, Venezuela and Libya. We continue to view output gains in Nigeria and Libya as climbing a slippery slope as serious threats to exports endure,” according to OilPrice.com. “Expected bullish money flows in the low $40s (USO enjoyed its largest w/w inflow last week since February) with managers hesitant to be short oil heading into the Nov. 30 meeting.”[related_stories]
OPEC has already reversed its policy of pumping oil without constraints, which helped bolster crude oil prices. The cartel, which meets on Nov. 30, previously adhered to an oil production policy aimed at defending its market share by undercutting costlier crude producers, namely the upstart U.S. shale oil industry, contributing to the increased global supply glut that depressed prices to multi-year lows.
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There are other catalysts that could potentially foster more upside for crude.
“Market sentiment tilting slightly back towards the possibility of an OPEC deal being made as the interests of cartel members align and core members + Russia approach their output capacity,” reports OilPrice.com.
United States Oil Fund