Oil: It’s all about OPEC today – BBH

Research Team at BBH, notes that yesterday's pessimism about a potential deal at today's oil producers' meeting in Vienna has been replaced by optimism and that crude oil around 5%.   

Key Quotes

“Supportive comment by Iranian officials about there being acceptable proposals on the table and intimations that Russia may also participate in cuts fanned the newfound hopes.”

“Still, there is some moving parts.  Iran has continued to indicate that freezing its own output is not on the agenda.  It is not clear that that would satisfy the Saudis.  Over the past year, the dispute between Saudi Arabia and Iran has been a major stumbling block preventing agreement.”

“The sharp rise in oil prices is helping lift some oil-sensitive currencies, like the Russian ruble, the strongest of the emerging market currencies today.  The Mexican and Colombian pesos may also be supported.  Among the majors, the surge in oil is giving the Norwegian krone a fillip; any may be helping Canadian dollar hold on to yesterday's gains.  The US dollar is holding just above CAD1.34.  It has not been below CAD1.3380 since the US election.”