Another day, another strategically timed headline meant to trigger an HFT algo momentum ignition spike, and sure enough oil explodes higher, even though as Goldman explained yesterday, even an OPEC freeze will do nothing for actual production.

This hit from Reuters, which once again relies on "anonymous sources" to generate the primary source of Reuters revenue: FX volatility, in this case in the CAD.

• IRAN SENDING POSITIVE SIGNALS THAT IT MAY SUPPORT JOINT ACTION TO PROP UP OIL MARKET - SOURCES IN OPEC, OIL INDUSTRY

Iran is sending positive signals that it may support joint action to prop up the oil market, Reuters says, citing unidentified people in OPEC and the oil industry.

Iran appears to be more willing to reach an understanding with other oil producers, though it has not decided whether to join a new effort, Reuters says, citing unidentified people.

“Negotiations are ongoing. I see positive signs coming from OPEC ’majors’,” Reuters says, citing an unidentified senior person in the industry familiar with the discussions, referring to Riyadh and Tehran

and then this happened:

Yuuuge volume too, which suggest that this is just the latest headline triggered squeeze.

Which was met with what appears like an official 'denial' headline shortly thereafter... but by then momentum had been ignited...

(Click on image to enlarge)

Which should not be a surprise, as Bloomberg notes, Iran is unlikely to support an oil output freeze even when its production reaches pre-sanctions level, while other OPEC countries continue to boost supply, writes Bloomberg oil strategist Julian Lee.

• Iran to continue to raise output as much as it can even after it regains pre-sanctions level of ~4m b/d: Lee
• Country produced 3.55m b/d in July: Bloomberg survey
• Iran targeting 4m b/d as soon as late Sept.
• Output from fields bordering Iraq seen rising to 290k b/d by March 2017 from 220k now
• Iran won’t restrict output growth while watching neighboring Iraq, rival Saudi Arabia raise supply
• Iraq produced 4.36m b/d in July, close to record 4.51m seen in Jan., accord. to Bloomberg survey
• Country quickly to boost exports by ~150k b/d after agreement on resuming shipments from Kirkuk fields
• Iraq’s Halfaya field to double output by mid-2018: state-run Missan Oil
• Exxon, Petrochina in talks to develop 2 fields in south Iraq: deputy oil minister; ministry seeks to boost combined production from both fields to 550k b/d from 70k b/d

However, what the headline did not point out was the following part of the same Reuters story:

"Freezing output now is difficult, everyone is raising production. And even if, and I am saying 'if' ... we agreed to a freeze, no one will commit to stick to it," the source said.

Eventually algos will read that far, but not yet.