Comments from an OPEC official that the market is producing an excess 1.5 mln barrels per day is helping weigh on crude. Dealers are beginning to factor in a production cut from the cartel, but many are looking past that cut already. Having seen prices in excess of $140 per barrel earlier this year, human nature being what it is, cheating (by producing more than quota) is likely to be rampant on the way back down.
Crude prices trade at $105.50, helping push EUR/USD down to 1.4080. Expect 1.4000 barriers to be the line in the sand near-term for EUR/USD. !.4190/95 is now resistance on rebounds. A break of 1.4000 would yield a decline toward the “old” all-time highs at 1.3665.
