Oil prices tanked in the overnight after substantial gains in Monday’s trading session after Iran and Saudi Arabia played teeter-totter on a deal to freeze or cut oil production at Wednesday’s informal OPEC meeting.
If they do walk away with no deal in Algiers with Russia still steamed that no deal was reached at Doha, Qatar this will be a Homer Simpson DOH! And the OPEC heavyweights only have themselves to blame when they complain their economies are in shambles and need a boost. In the overnight electronic session the November crude oil is currently trading at 4500 which is 94 cents lower.
The trading range has been 4596 to 4495 and looks heavy in the early going. Another headline investors are looking at is Goldman Sachs drop its 4th-quarter forecast on WTI oil from $50 to $43. Investors do not seem so shocked because in 2008 Goldman Sachs did forecast in $200 a barrel when we actually top out at $147 and change.
On the Natural Gas front the October contract expires today so rollover or liquidate early and often like voting in Chicago. There is a broad area of low pressure likely to develop into a Tropical Depression and the cone has it headed to the Caribbean and could pose a threat to the Gulf region. In the overnight electronic session the November Natural Gas is trading at 3.065, which is 1 cent higher. The trading range has been 3.078 to 3.052.
On the Ethanol front another quiet night with no trades posted in the overnight electronic trading session. The October contract settled at 1.649 and is currently showing 2 bids @ 1.546 and 2 offers @ 1.582.
On the Corn front the market is trying to find some equilibrium with harvest overall ahead of schedule but wetness and floods in Iowa, Minnesota and Wisconsin has those states behind. We also are having mixed results harvesting in Illinois. Friday we have the USDA Grain Stocks and Small Grain Summary. In the overnight electronic session the December Corn is currently trading at 329 ¼, which is a ¼ of a cent higher. The trading range has been 330 to 328 ½.
Have a Great Trading Day!