Earlier today, when Reuters quoted “sources” that OPEC may consider a new oil output ceiling, a recurring headline meant simply to spark algo-driven buying (which it did), we said that the “most likely next step: a denial from other “sources.” That is precisely what happened moments ago when with hours until the OPEC meeting in Vienna, the UAE oil minister Suhail bin Mohammed al-Mazroui repeated what he has said only yesterday when he said he was happy with the oil market, and confirmed there will be no unanimous oil freeze.
- UAE OIL MIN. SAYS HASN’T HEARD ABOUT AN OPEC OUTPUT TARGET PLAN
- UAE MIN. SAYS OPEC, OTHERS WOULD HAVE TO AGREE TO ANY FREEZE
- UAE MIN. SAYS OPEC `CANNOT JUST UNILATERALLY DO A FREEZE’
- UAE MIN. SAYS OIL MKT IS RECOVERING, STILL ROOM TO CORRECT MORE
But… if he hasn’t hear it, that begs the question where did Reuters hear it? And then we recall that Reuters also happens to be one of the biggest FX trading platforms, and if there is one thing that causes FX volatility it is rapid commodity moves.
For those wondering if oil is down on the news, spoiler alert: no.
via http://ift.tt/1ZdU1oq Tyler Durden