Thursday, August 27, 2015

Oil Soars 10% for Biggest 1-Day Rise Since 2009

Oil futures jumped by more than 10% today, following a report that Venezuela asked the Organization of the Petroleum Exporting Countries to hold an emergency meeting.

A special meeting of key oil producers implies that they would discuss a possible production cut to help stem the recent drop in oil prices. Venezuela has also asked OPEC to consider a coordination with non-OPEC Russia to discuss a strategy to stem the recent rout in oil prices, WSJ reports.

West Texas Intermediate crude for delivery in October  jumped $3.96, or 10.3%, to settle at $42.56 a barrel on the New York Mercantile Exchange. That was the largest single-session percentage gain for a most-active contract since March 2009. Prices had settled on Monday below $39 for the first time since February 2009.

The possibility of an emergency OPEC meeting seems slim, however, since it appears that Saudi Arabia is more interested in keeping the price down on the expectation that it will cause marginal producers, including many US oil producers, to shut down.


1 comment:

  1. More pain for the manipulators (and U.S. shale co's) is to come. I don't anticipate this nonsense to last more than one more year, but you never know.

    I made a small purchase two days ago...... so it was really nice when my co-worker told me of the price jump.