WTI flat at $57.90 after falling to $56.83
There were no surprises at the OPEC meeting as key leaders revealed that the 30 million barrel per day quotas would remain unchanged. Crude prices attempted to rally after the first confirmation of no quota changes and hit $58.60 but US dollar strength after non-farm payrolls sent prices to the lows of the day.
The longer-term story at OPEC is the cartel's slowly weakening grip on members. OPEC secretary general Al-Badri even said production levels were "indicators" not quotas. "Production policy is a sovereign right," he told reporters.
Iran's oil minister echoed that sentiment has he pledged to ramp up production by up to 1 million barrels per day within a year after sanctions are lifted. He said the country doesn't "need any decision from the OPEC side to return to the market, because it's our right."
The next OPEC meeting was scheduled for Dec 4.
Where next for oil prices?
I like oil shorts because over-production is a severe problem but here's why I don't think now is the time to sell crude.
The price action today is impressive for the bulls. The US dollar is very strong but crude prices are hanging tough.
