OPEC+ won’t let prices slide

Moves in commodity prices have been fairly muted on the week, but this masks a dramatic mid-week plunge and recovery in oil prices. The big news was that OPEC+ announced a four-day delay to its policy meeting, apparently because of disagreements among member states. We think that the most likely outcome of the meeting is that Russia and Saudi Arabia extend their voluntary cuts into January. If we are right, oil prices will find support at current levels, but are unlikely to make gains.