Oil inter-market: Regains poise ahead of OPEC meeting, will it sustain?

Oil bounced back and resumed its ongoing bullish momentum over the last hour, after a brief stint lower earlier on the day, in response to technical selling and profit-taking.

During the early European hours, oil retreated from weekly tops as markets locked-in gains amid increased nervousness heading into the much awaited OPEC meeting on oil output talks, scheduled next week in Algeria.

However, oil soon found fresh impetus from latest headlines reported by Reuters, that Saudi Arabia made a conditional proposal to Iran at the Vienna meeting that ended today. Saudi agreed to lower output, provided Iran agrees to freeze production at current levels of 3.6 mln bpd.

Although it’s tough to say if the black gold would sustain the rebound as risk-off market profile persists, as reflected by rising VIX index, which will continue to weigh on the investors’ appetite for risky assets such as oil. While directionless trading seen around the greenback against its major peers, also fails to provide any support to oil prices.

Attention now turns towards the US rigs count report due later in the NA session, while a string of Fedspeaks may have significant impact on the USD price-action, which will eventually influence the dollar-denominated black gold.