Saudi Arabia offers to cut production, in a sign of good faith after they lowered expectations for a deal in Algiers this week. Saudi Arabia says they are ready for any outcome and there is talk that if OPEC can come to an agreement, they could still formalize this meeting. OPEC negotiations are heating up as the cartel members look to solidify a deal to restrain oil output.
Read: http://www.investing.com/analysis/the-e ... -200155485
Crude Oil Prices - Sept 26
Crude Oil Prices - Sept 26
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Crude Oil Prices - Sept 26
The 15th International Energy Forum kicked off in Algiers on Monday with all eyes on the informal meeting tentatively scheduled for Wednesday afternoon among members of the Organization of Petroleum Exporting Countries.
OPEC members, led by Saudi Arabia and other big Middle East crude exporters, such as Iran and Iraq, will meet non-OPEC producer Russia on the last day of the conference.
According to market experts, chances that the meeting would yield any action to reduce the global glut appeared minimal. Instead, most believe that oil producers will continue to monitor the market and possibly postpone freeze talks to the official OPEC meeting in Vienna on November 30.
OPEC members, led by Saudi Arabia and other big Middle East crude exporters, such as Iran and Iraq, will meet non-OPEC producer Russia on the last day of the conference.
According to market experts, chances that the meeting would yield any action to reduce the global glut appeared minimal. Instead, most believe that oil producers will continue to monitor the market and possibly postpone freeze talks to the official OPEC meeting in Vienna on November 30.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Crude Oil Prices - Sept 26
Highlighted Catalysts (high-magnitude events expected within the next month):
> SM Energy is shopping its Eagle Ford non-operated asset (Anadarko-operated) to fund a portion of the previously announced Midland Basin-Howard County acquisition.
> Reports suggest that several Delaware Basin private operators are shopping acreage in view of recent M&A acceleration in the area. Available packages will likely continue to fetch very high prices, lending further market support to Delaware operators.
> SM Energy is shopping its Eagle Ford non-operated asset (Anadarko-operated) to fund a portion of the previously announced Midland Basin-Howard County acquisition.
> Reports suggest that several Delaware Basin private operators are shopping acreage in view of recent M&A acceleration in the area. Available packages will likely continue to fetch very high prices, lending further market support to Delaware operators.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Crude Oil Prices - Sept 26
Read this very good article: https://finance.yahoo.com/news/why-oil- ... 00812.html
"The price of oil will rise only when futures traders figure they will make more money going long than short. This hasn’t happened yet, but the fundamentals ensure it will. And when it does, the speculators will pile in and WTI will blow through US$60 quickly and likely not slow down thereafter. This will set the stage for another massive ramp up (in drilling activity) ensuring yet another crash. Because volatility is not only assured but required." - David Yager for Oilprice.com
"The price of oil will rise only when futures traders figure they will make more money going long than short. This hasn’t happened yet, but the fundamentals ensure it will. And when it does, the speculators will pile in and WTI will blow through US$60 quickly and likely not slow down thereafter. This will set the stage for another massive ramp up (in drilling activity) ensuring yet another crash. Because volatility is not only assured but required." - David Yager for Oilprice.com
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group