We're firmly in the "deal chatter zone" now

  • Based on the data today, there is a growing conviction that the deal may need to be extended for 6 months, although the length of extension is not firm yet
  • There's a growing consensus among OPEC and non-OPEC members on the need to continue rebalancing the market
  • Energy minister spoke to Russian counterpart yesterday to discuss status of the oil market
  • Both ministers to meet in Beijing within 10 days
  • Both ministers expressed their satisfaction with market fundamentals
  • Agreed on the need to continue working with others to help guide the oil market towards its rebalancing

So far, oil's having none of all this chatter, although it has staged a bounce from the earlier 46.61 lows to 48.24.