OPEC announces 32.5 BPD(May production) limit for oil production, down from 33.6...

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Squawk / 28 September 2016 at 19:30 GMT

JakubSzalaFX

Trader, Analyst / Individual Trader

Poland

OPEC announces 32.5 BPD(May production) limit for oil production, down from 33.69 output at the end of August. At the first sight seems not to be a big deal. Market reaction, for now, rather mild.
Price turned down around my level 47.10.

Anyway, looks like we might be having new correlation:

Falling USDJPY vs falling EURUSD, AUDUSD, before it was opposite. Even now we had a great evidence, OIL deal gave a risk-on with the above correlation in play, to reverse after a while.

Sentiment might be now in the most serious risk-off mode, implying first JPY, second USD as a last shelter.

Usually, when speaking about monetary policy divergence, USD was the only gainer/loser.

What could cause this change?

28 September

yuiyui

even if the Russians eventually agree to a freeze, the US shale and Canadian sands wont. Saudi always slows production around this time anyways and we are far from working our way down from these record stockpiles

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