FXStreet reports that strategists at OCBC bank continue to expect Brent to trend from $40-$43/bbl heading ever closer to the US Presidential elections while OPEC is jawboning again.

“Oil prices spiked last Thursday after OPEC remarked that ‘the worst is behind for the oil market.’ Recall three weeks ago, Saudi Arabia took its war against short-sellers public. We expect Brent to correct back into the $40- $43/bbl range.” 

“Crack margins for gasoline declined on the week while that of diesel rose, adding to further mixed signals. Separately, Saudi Arabia raised its OSP for its Arab Light crude oil by 10c/bbl to -40c/bbl off the Oman/Dubai average.” 

“We continue to expect Brent to range trade until after the US Presidential elections.”