Oil prices slide ahead of OPEC meeting

•      Oil prices slide ahead of OPEC meeting

–     Talks between member nations Saudi Arabia and Venezuela with non-members Russia and Mexico, ended without announcing any kind of agreement

–     Signals sent by individual member nations thus far suggest there is little consensus on whether and how to reduce output and stabilize prices

–     What could be agreed on Thursday’s meeting, is a stricter enforcement of the existing production quota of 30 million barrels a day

–     This is unlikely to be enough to reverse the fall by more than 30% since June in oil prices and the fall may continue against the background of a global growth slowdown

•      Yesterday’s US GDP data showed that the US entered the final quarter with a good head of momentum

–      On the other hand, the US consumer confidence index declined from its highest level since October 2007 and the Richmond Fed manufacturing index declined from an almost 4 year high

–     The mixed data weakened the dollar. However, I would continue to view any USD setbacks as providing renewed buying opportunities

•      Today:

–     Sweden: Economic tendency survey for November

–     Norway: AKU unemployment rate for September

–     UK: 2nd estimate of Q3 GDP is expected to show a +0.7% qoq pace of growth, in line with the preliminary estimate

–     A busy day in the US: Durable goods orders, personal income and personal spending, core PCE, pending home sales and new home sales, all for October. The Chicago purchasing manager index and the final University of Michigan confidence index, both for November. These positive data are likely to prove USD-supportive.

–     New Zealand: Trade deficit for October