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OPEC Secretary General sees low price of oil as temporary

FXStreet (Łódź) - Independent Analyst Malcolm Graham-Wood reports that OPEC Secretary General's suggestion during his meeting with the Russian Oil Minister on Tuesday that the current low price of oil is temporary, caused Brent to jump by over two dollars to $96.63.

Key quotes

"He also suggested that at the next Opec meeting quotas may have to come down from the current level of 30m b/d to around 29.5m b/d."

"The trouble is that whilst all member of Opec want higher prices few are prepared to cut their own production and even if they do agree to pare back they usually cheat."

"I mean, current quotas are being exceeded by at least 500/- b/d before Saudi Aramco cut back recently. At least it shows that Opec are at least looking at the supply and demand numbers for next year."

"The API inventory stats had the analysts in a right pickle, having forecasted a draw of 1.5m barrels, stocks unexpectedly rose by 3.3m barrels."

"I will hold judgement until the EIA numbers tonight to look at both crude and products as September can throw up some funnies across the board."

"The statements from the Fed tonight will be interesting, markets are expecting further cuts in QE and to see if Janet Yellen will give a steer on interest rates, for oil watchers we need to see if the modest pick-up in the economy is coming through."

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