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OPEC/non-OPEC co-operation deemed highly unlikely

Published Tuesday, February 2nd, 2016

February began on a rather discouraging note with PMI numbers for January that gave more encouragement to the pessimists than the optimists. Both the US and China delivered manufacturing numbers below 50 indicating contraction. The eurozone came in above 50 at 52.3 but it was lower than December’s number.

Oil prices responded to confirmation of a global manufacturing ‘recession’ falling to $33.92 bbl on Brent (-2.07) and to $31.29 bbl on WTI (-2.33). There was lots of analyst talk about OPEC/non-OPEC co-operation with a strong consensus that it is highly unlikely to occur. Prices will be below $30 bbl again by the end of the week unless the possibility of co-operation is kept alive. At the close Brent was down $1.75 bbl at $34.24 and WTI down $2 bbl at $31.62.

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Posted by David Hufton