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Brent unmoved so far by Saudi and Russian confirmation

The price of December Brent crude was trading higher this morning, to as high as $91.20. However, and since then it has backed off, to as low as $89.90. It is above that low now and confirmation from both Saudi Arabia and Russia; that they will extend their voluntary output cuts until the end of December at the very earliest was kind of expected by the oil markets. That said, one has to weigh this news against the backdrop of the wider markets and recent downside in equities. The downside moves in that space is due to the weaker outlook for the world economy heading into the end of Q4. So, in reality these extended oil output cuts are perhaps only countering that wider outlook and that might explain why December Brent has not really jumped on this news. It might yet do so of course, but we shall have to see on that. December Brent is just now trading at $90.20, as the markets wait to see what emerges from the wider OPEC meeting just now getting underway

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