Oil up big on OPEC comments:

  • Oil rallying sharply today on a flurry of upbeat comments heading into the OPEC meeting in Vienna, though devil remains in the details. Saudi Arabia Oil Minister Al-Falih said there is a good chance for a deal. However, there are still concerns about a more hawkish stance from Saudi Deputy Crown Prince Mohammed bin Salman, who was seen as the driver of the Doha disappointment earlier this year. In addition, Falih reiterated that the market will slowly recover even if there is no deal, which he said is “not a bad outcome”. However, when it comes to Iran, long seen as the biggest stumbling block facing a deal, he did stress that a freeze at pre-sanctions levels is acceptable. Iranian Oil Minister Bijan Namdar Zangeneh said that while his country will not freeze production, there is another arrangement in play (though he did not elaborate). There has also been talk this morning that Russia may contribute two-thirds to a 600K bpd cut from non-OPEC producers, though a Russian source described that figure as “excessive”.