Oil Caps Biggest Three-Day Gain Since 1990 as OPEC Ready to Talk

by Mark Shenk


August 31, 2015 — 7:11 AM HKT
Updated on September 1, 2015 — 4:04 AM HKT


Oil capped the biggest three-day gain in 25 years after OPEC said it’s ready to talk to other global producers to achieve ‘fair prices’ and the U.S. government reduced its crude output estimates.

Crude traded in New York surged 27 percent in three days, the most since August 1990 when Iraq invaded Kuwait. Both West Texas Intermediate and Brent benchmarks have climbed more than 20 percent from their closing low on Aug. 24, meeting the common definition of a bull market. The Organization of Petroleum Exporting Countries, responsible for about 40 percent of the world’s supply, said in a monthly publication it’s willing to talk, “but this has to be on a level playing field.”

Prices erased last week’s drop to a six-year low as the OPEC comments and signs that the U.S. shale boom is fading faster provided optimism that a global supply glut will evaporate sooner than estimated. A measure of oil-price fluctuations rose to a five-month high as traders sought protection from market swings.

“The market turned around on two pieces of news,” Phil Flynn, senior market analyst for Price Futures Group Inc. in Chicago, said by phone. "The EIA cut its U.S. output estimates and OPEC says its ready to talk to others about cutting output."

http://www.bloomberg.com/news/articles/201...9-as-rigs-climb

With the oil prices goin up, it's interesting to c the strength of USD/MYR today as the last ref price was 4.1869

Luckily it went up after the pump price drop. Or else we will be paying more for oil. At least right now, with decrease in price is like 1 month of subsidy

so now situation has changed a little bit.

1. Crude oil recover 30%
2. Ringgit strengthen a little bit.
3. Bersih didnt really create much impact on RM
4. No drastic move by the gov.

Everyone still firm with RM will weaken further after this small bump of recovering ?

crude price gain in 3 days is about 25%.

hedge funds probably repositioning their crude longs and shorts.

question is this violent swing sustainable?

rm gaining another 1% today is reasonable, with bursa gaining too.

the rest... politics, mgs yields, current account, foreign reserves... still much unchanged for now.

my bet... 4.10-4.20 will stay for a while.

i realised everyone here giving facts, figures, graph, rumors, news and funda but rarely ppl give their target price here

31 Aug 2015 03:00 UTC - 1 Sep 2015 03:02 UTC
USD/MYR close:4.16706 low:4.13886 high:4.20227

USD/MYR could close @ 4.15 today with all the +ve news

Good to lock profit-taking, as MYR is stronger after MERDEKA ??

rm may strengthening further if break below the line i draw.

Hope tis is not dead cat bounce

can't break below the line

hoseh or not hoseh?

oil need to be >70usd to have a chance for 3.80.

last 3 days, oil rose bigtime, usd weakens - the relationship is inverse.

all currencies gained vs usd.

today, top for asia is Taiwan Dollar, Korean Won 2nd, RM 3rd.

if oil declines today and it is, all of them will fall against usd again.

we'll see effect tmrw after usa markets close.

see-saw, see-saw, enjoy!

This post has been edited by AVFAN: Sep 1 2015, 02:29 PM

exports->trade balance->current account->fx...

anyone has a good grasp what effect this will have on the rm?

1.00 USD = 4.18 MYR

1.00 SGD = 2.96 MYR

1.00 USD = 4.20320 MYR

Crude Oil (WTI) -1.44
43.97 -3.17%
6:51PM EDT

now 43.32.

gained 25% in 3 days, lost 12% in 1.5 days.

will lose everything in next 1.5 days?!!

usd/rm 4.22... no surprise.

anyone here use wire tt USD to RM in cimb?

how long will the bank change the USD to RM and what rate they using ( the rate on they day received TT notice or the the rate they day they convert?)

As usual, MYR depreciate the most (down 1.19% to 4.2140) against USD as compared to most Asia Pacific currencies