The levity seen in oil prices spread throughout the rest of the commodity complex assisted by some US dollar weakness with Nickel bouncing from its lowest levels in a month. This broad-based rally in commodities helped spur risk-on sentiment in equity markets, pushing US markets to new all-time highs with the S&P 500 closing at 2190, edging ever nearer to 2200.
The chances of a deal actually occurring at next month’s OPEC meeting are minimal. The Saudi’s are happy to commit to some sort of OPEC-wide supply freeze deal so long as Iran is party to it. And Iran refuses to agree to any deal that will inhibit them from lifting their oil output to pre-sanctions levels, which despite better than expected progress they are still well away from. This is why no deal could be agreed on in the first half of the year. And since that time, the more open-minded and long-serving Saudi oil minister Ali Al-Naimi has been replaced as part of Deputy Crown Prince Mohammad bin Salman shake up of the Saudi cabinet. Since Al-Naimi’s removal, the tone towards working with Saudi Arabia’s main regional rival, Iran, has dramatically hardened making a deal even less likely.