OPEC uncertainty:

  • Oil volatile with latest flurry of OPEC headlines. Follows a ~3% selloff on Friday on news Saudi Arabia pulled out of a meeting scheduled for today between OPEC and non-OPEC producers. Meeting was subsequently canceled as Saudis highlighted need for OPEC to first reach an internal agreement on a production cut deal. Biggest development over the weekend seemed to be comments from Saudi Arabia Energy Minister Khalid al-Falih, who said oil market would balance itself in 2017, even if producers did not intervene. Added that maintaining production at current levels could be justified. Also stressed Saudi Arabia sticking to its position that everyone must cooperate. However, some thoughts the comments intended to increase negotiating leverage. Some better sentiment surrounding headlines this morning that Iraq will cooperate with OPEC members to reach an agreement acceptable to all. However, Iran still reportedly pushing for an exemption.