Front month #brent #oil saved from further lows, reached 82$/bbl and retreated close to 83,5

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While few days left for expiry as well as from opec meeting, Harry Tchilinguirian expects OPEC to take action to stem the slide in prices. He doesn’t think Saudi Arabia is trying to push oil to $70 a barrel in an effort to choke off U.S. shale production. “The fiscal challenge posed by an oil price of $70 for a year is too high for OPEC, given they have to spend socially speaking after the Arab Spring, and given the threat ISIS poses in the region,” he said yesterday by phone. Brent will rebound to $90 within two to three weeks if the output cut is at least 1 million barrels, Tchilinguirian said.
It remains to see if Saudi’s will take the risk Tchilingurian expects in an anelastic demand. Having to mention that this strategy in the past didn’t had the expected results in Saudi balance of payment.
The WTI BRENT spread kept at 3$/bbl, well below the 10$/bbl that market expected.

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