%% OPEC may not agree on cuts; markets are good @ cutting prices when they get to high. The bulls were looking good until they ran out of month. NOT a prediction.LOL
OPEC in first joint oil cut with Russia since 2001, Saudis take 'big hit' http://www.streetinsider.com/Commod...since+2001,+Saudis+take+big+hit/12294331.html
Russia "may" agree to cut 300,000 from its 10,000,000 a day. That is 3%. In the meantime Shell in US was happy and said so we can increase production
What OPEC says and what they do are two different things. They are notorious for selling more than their promised limits. Iraq, Venezuela and Iran need to sell as much as they can to get their economy back online. I wonder if they will stick to their promised production quotas and keep the price of oil at the current level.
I just saw this on STOCKTWITS. -------- So, this is why they want Indonesia out of OPEC. I realize the source is Zerohedge, but as long as the remarks are accurate, it's no big deal. ------ As expected, the OPEC headlines continue to come in hot and heavy, with Reuters reporting first that Saudi Arabia has agreed to an output cut of roughly 500kbps to 10.06mmbpd. This brings Saudi production to levels last seen in January. Additionally, Iran is said to have agreed to a production cap of just under 3.8MM bpd, which also appears to be below what was speculated just moments ago, or 3.9mmbpd. OPEC SOURCE SAYS IRAN PRODUCTION TO BE SET AT 3.797 MLN BPD UNDER NEW OPEC CEILING But the most shocking announcement is that Indonesia appears to have been suspended from OPEC, and that its oil output, which according to the latest OPEC monthly report was 722kpd, will be distributed among other OPEC nations, in what may amount to a production "shuffle" not a cut: OPEC SOURCE SAYS INDONESIA SUSPENDED FROM OPEC OPEC SOURCE SAYS OPEC AGREED TO DISTRIBUTE INDONESIA OIL OUTPUT SHARE AMONG SOME OPEC COUNTRIES: RTRS The question then arises if Indonesia was suspended from OPEC because they wouldn't agree to cuts? Since all votes must be unanimous under OPEC rules, this might be a way to force a deal. If they won't cut (or, in the case of Iran, be allowed to increase to 3.975), then they're out. Also, with its share being redistributed, does that now mean that the production freeze cap is effectively 700kpd higher than prior to the expulsion. Finally, according to a JBC report, OPEC output rose once gain in November, hitting 34.06mmbpd, up from the official 33.643mmbpd as of October. OPEC NOV. CRUDE OUTPUT RISES ON MONTH TO 34.06M B/D: JBC SAUDI ARABIA NOV. CRUDE OUTPUT FALLS M/M TO 10.55M B/D: JBC Summarizing the above, Bloomberg's Julian Lee writes that OPEC output rose by another 220,000 barrels a day between October and November, according to estimates published by Vienna-based JBC Energy. Total OPEC up from 33.84 million to 34.06 million. That means the actual output cut will have to be bigger than announced to get the total down to 32.5 million. So iran increasing, Indonesia leaving, Libya Nigeria and Angola get exemptions and Iraq upset. This #opec cut consensus going well! There is much to process, and the market's kneejerk reaction has been to fade the latest set of headlines, perhaps in anticipation of the upcoming shale production surge. -------------- So, if you do the math, OPEC production may have been reduced, but world production is on the way up. Oil prices moved up 7-8 percent today but it should come down when the oil supplies do not reflect the recent agreements. http://www.zerohedge.com/news/2016-...-its-share-be-redistributed-among-member-coun http://stocktwits.com/flourish/mess...tm_source=dailemail&utm_campaign=outboundteam http://stocktwits.com/WhatToDo/mess...tm_source=dailemail&utm_campaign=outboundteam
This news of production reduction is promoted by US oil and gas companies to jack up the price of oil. You wont see any squeeze or shortage in the production. We should see $42 in a month.
That is absolutely possible but it will end bad. Just look the stocks that fly high for no reason. Check out ADI. Down over 5% today. It has room to drop another 10% at least and still it will be overvalued. CAT and MMM are two other overvalued stocks. There are thousands of them. Now is the time to slowly get into GOLD which is a DOG in this market.