WTI climbs to highest since Sept 12

The next big event on the economic calendar is the OPEC meeting in Algeria next week. Chatter from ministers suggest that no decisions will be taken but they could lay the groundwork for a freeze later, or at least provide some semi-credible jawboning.

At the moment, oil is benefitting from the slide in the US dollar and some momentum to the upside. In addition, Russia is out with some constructive comments on an oil production freeze.

The 100-day moving average gave way at the start of US trading and crude is trading at the best levels of the day, up $1.05 to $46.37 per barrel.

Technically, nothing is standing in the way of a rally to the downtrend since June, if not the September or August highs. Look for that momentum to continue into the OPEC meeting.

In the past few minutes, however, chatter about a Genscape report showing a more than 210,000 build of oil inventories at Chushing has led oil to pare some gains.