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Another bad day for oil price

FXStreet (Łódź) - Independent Analyst Malcolm Graham-Wood remarks that Iranian Oil Minister's suggestions on Wednesday that ultimately he saw no reason for holding an emergency OPEC meeting put pressure on oil.

Key quotes

"Of course Iran is in an acutely difficult position, twas ever thus I suppose, but remember the deadline for a deal on their nuclear status expires on November 25th, just two days before the Opec meeting."

"The markets minds are thinking that the Opec meeting will be even more tricky if Iran arrives with the loosening of sanctions and another million or so b/d up their sleeve. Now the Saudi position starts to look a lot clearer and if any output reductions or quotas are to be re-imposed they want their fellow members to see quite how difficult the market is."

"The bottom line is very clear, call for Opec oil in the first quarter of 2015 is forecast to be 28.96m b/d whilst current production is nearly 31m b/d, Mr Mikawber would have something to say I’m sure…"

"Another reason for the weakness, particularly for WTI, came with the EIA inventory stats which echoed the numbers from the API on Tuesday by showing a build of just over five million barrels of crude oil, notably gasoline and distillates grew too."

"Finally it was interesting to see that the Fed Policy meeting minutes were more dovish than expected, indicating as they did, that interest rates were likely to stay ‘near zero’ for a considerable period. It transpires that the committee was actually more concerned about global economic weakness and the strength of the dollar than any problems at home."

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