Pondering petroleum
Saudi Arabia wasted no time yesterday reacting to comments from Venezuela, releasing yet another statement to the effect that OPEC members are prepared to cooperate to stabilize crude oil prices. Although markets were taken in initially, it took little time for them to show that they were not falling for the OPEC song and dance, with crude oil giving up a portion of its gains from the morning. The next OPEC meeting will be held on December 4 in Vienna.
Meanwhile in Europe, the Bank of England confirmed this morning that it was in no hurry to raise its key rate and when it does, the increases will be gradual and limited. In short, a tune we’ve all heard before. In Germany, the Ifo Business Climate Index, which measures business confidence, rose in November both in terms of the current situation and the outlook.
This morning at 8:30, we will get a look at the second estimate of U.S. Q3 GDP as well as Personal Consumption, following at 10:00 by Consumer Confidence. The economic growth component will no doubt be the main focus of markets’ attention. We will also be keeping an eye on the potential impact on geopolitical issues of the military aircraft shot down by Turkey near the Syrian border, which appears relatively limited at the moment.
