Oil Fundamental Forecast – September 7, 2016

Crude Oil fell 15 cents to trade at 44.29 while Brent Oil took a serious fall giving up 75 cents to 46.88. oil fell after a cooperation agreement signed on Monday by Russia and Saudi Arabia didn’t yield specific measures to reduce a global oversupply.  Brent crude dropped 0.6 percent to $47.36 a barrel in London. The contract jumped as much as 5.5 percent on Monday as news broke Saudi Arabia and Russia would make a “significant” joint-statement on the oil market at the G20 summit in China.

It later pared those gains as the two nations stopped short of announcing a freeze in output. A freeze proposal was derailed in April over Saudi Arabia’s insistence that Iran participate. OPEC Secretary General Mohammed Barkindo will meet Iran’s Oil Minister Bijan Namdar Zanganeh in Tehran on Tuesday.

An agreement between Russia and Saudi Arabia to work together to return stability to the global oil market has sent oil prices briefly upward, though they later pulled back again. Oil prices rose in Asia on September 6 in the wake of the announcement by the two energy powers during the G20 summit in China a day earlier, moving by as much as 5 percent upward to $49.40

But prices later retreated again as Saudi Arabia ruled out any need to trim back production and oil traders questioned whether Riyadh and Moscow would curb global oversupply.

Saudi Arabia and Russia agreed on September 5 on the sidelines of the G20 summit to set up a task force to review oil-market fundamentals and to recommend measures and actions that would secure market stability.

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Upcoming Economic Events that you should be monitoring:

 September 7, 2016

Government Bond Auctions

Date Time Country Auction

Sep 07 10:30 Denmark Holds bond auction

Sep 07 11:03 Sweden Holds bond auction

Sep 07 11:30 Germany Eur 5bn 0% Aug 2026 Bund

Sep 08 11:00 Ireland Holds bond auction

Sep 08 17:20 Italy Announces details of bond auction