They cut production and the market just DOES NOT CARE.. Looks like we will be taking a big dump here over the next few weeks... $52 crude...
He's not wishing, he's just making an observation. If OPEC had the power it once did, oil would have been up strong today instead of off another buck or two. Obviously, that has implications for several different markets.
or traders who realy look at the numbers know that when opec cuts or raises they still over produce by roughly 1.5 million barrels a day.
It's all about sentiment. People have forgotten about peak oil, supply disruptions, hurricanes... A bullish piece of info like OPEC comes out, and the market doesn't care.. THAT, my friends, is BEARISH, and was my reason for saying we would see a resumption of the bearish trend. For how long?? Who the hell knows... But she don't look pretty... 52 by early Nov...
I did not refer to his current trading. I'm sure he did well with his belief system when he started this thread. Rather, I had his future trades in mind, the ones he'll make when OPEC regains control, after the current downtrend is over... And as we are already dwelling into fundamental stuff: the last OPEC cartel was bombed especially by Britain and Norway, their reserves have dwindled since. And OPEC have learned their game theoretic lessons since: they are not interested in sky high prices. Because of the importance of this statement, let me repeat it: OPEC are not interested in sky high oil prices. Their strategy is rather to pursue high prices, which are just below the price level from which on it is attractive again to start more complicated (and hence more expensive) new drilling projects, i.e. draw in new competitors. That level is supposed to be at 60$ per barrel upwards, according to some investment banks. And if you've followed financial news during the past weeks, OPEC set a price target in the 50-55$ per barrel range. What a coincidence...
amazing how 1.2 Million barrels less a day drops oil over $1.00 With oil dropping this could signify one thing: A SLOWING ECONOMY. If this was 2 months ago oil would have surged 2-3 bucks. Now all of the sudden we have enough oil where even a cut back doesnt do anything...amazing isnt it. What ever happened to 4-5 dollars gas and 100 a barrel??????
the headline I just read was indicating $55 not $50-$55 www.energyintel.com/PublicationHomePage.asp?publication_id=4#HEAD -Opec Meeting Signals New $55/bbl Price Floor Although Opec ministers were meeting in Qatar last week about production levels, the most important outcome of the meeting is what this agreement means for prices. With the unambiguous leadership of Saudi Arabia, Opec is effectively endorsing a price floor of $55 per barrel for the Opec basket by stepping in to cut production now, and possibly again in two months. (Monday, October 23, 2006) -
here is another headline www.energyintel.com -Crude Settles at Year-Low Despite Opec Cut Instead of Opec's announcement of a production cut igniting a rally in crude prices on Friday, front-month futures on the New York Mercantile Exchange (Nymex) lost $1.68 to close at $56.82 per barrel, the lowest settlement of the year. Friday's sell-off was partly due to the expiration of the November contract but also doubts that the cuts will be fully implemented. (Monday, October 23, 2006) -