Crude Oil Prices Seek Cues from G20 Meeting After Dramatic Drop


  • Crude oil prices hit 13-month low, breach critical chart support
  • Gold prices down as EUR/USD fall broadly boosts the US Dollar
  • SP 500 futures hint at risk-on mood, G20 summit now in focus

Crude oil prices plunged Friday, with the WTI benchmark sinking to the lowest in 13 months. Oversupply fears appear to remain the source of selling pressure. The latest drop seems to have been triggered by comments from Saudi oil minister Khalid Al-Falih, who said output increased again this month.

Looking ahead, all eyes are on the G20 summit in Argentina. Central bank heads and finance ministers will begin to gather Monday. Reports cited by Bloomberg suggest oil ministers from Saudi Arabia and Russia are due to appear as well. Leaders of the participating nations will join in Friday and meet over the weekend.

Thus far, Russia has been reluctant to join calls for another coordinated supply reduction. If incoming commentary suggests officials from Moscow and Riyadh are finding common ground on the matter, oil may recover. However, rhetoric hinting at divergence may compound selling pressure.


Article source: