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OPEC reaches a deal – report – Oil seems to

According to a delegate cited by Bloomberg, OPEC members have reached a deal on cutting oil output by 1.2 million barrels per day to 32.5mpbd. The headline looks good. Back in September, OPEC members discussed a deal for maintaining output at between 32.5 to 33.5  mbpd. So, the announcement is at the more ambitious edge of the deal.

Oil prices were already  rallying on many optimistic headlines.  WTI crude  oil reached the August peak of $49 but may already be selling on a “buy the rumor, sell the fact”.

CAD follows oil  prices in the wider scheme of things, but  seems vulnerable. The Canadian dollar had a tendency to fall harder with oil while rise in a more gentle manner when the black gold advanced.

It is important to stress that this is not an official announcement. In addition, there is a great difference between making an announcement and following through. OPEC members have violated their quotas many times in the past.



The reaction in USD/CAD  is  somewhat skewed by the Canadian GDP report.

Here is the chart:


Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.