By EconMatters
There is a nice setup in the oil market ahead of the OPEC Meeting this month that meets all the criteria for a nice trading setup. OPEC is going to cut production at this meeting on the 30th. There is massive short positioning that will have to unwind over the next 20 days in the oil markets.
The catalysts are the following:
1) Considerable bearish Sentiment & Positioning in the Oil Markets
2) Cold Weather Coming for both Natural Gas & Oil Markets which have been trading together
3) Risk-On mode in financial markets after the Election next Tuesday
4) OPEC Meetings on the 25th & 30th of November
5) Good Risk Reward setup Given Recent Price Decline in Oil Markets
6) Low Oil Prices put more pressure on OPEC to Over deliver on expectations for Production Cuts
7) Saudi Arabia has changed Market Strategy, needs higher prices for economic reasons
8) Traders will not want to be short here ahead of OPEC Meeting
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