Reuters: OPEC+ announces additional 1M bpd in cuts
OPEC+ has agreed on an extra 1M bpd supply cut alongside an extension of the Saudi 1M bpd voluntary cut, fulfilling original Saudi objective of ensuring additional cut to shore up markets
OPEC Cuts another 1 million bpd
OPEC Cuts another 1 million bpd
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: OPEC Cuts another 1 million bpd
Oil just dropped $2 dollars a barrel. Very frustrating. DOW is up over 300, OPEC does its thing and WTI craters.
Re: OPEC Cuts another 1 million bpd
If the US government is censoring public discourse through social media, traditional media and NGOs , Cliff why should it be any different if trading institutions, energy NGOs , Vanguard, BlackRock, State Street and Fidelity aren't controlling oil prices at the behest of the US government and DOE? This is how fascism works. Mussolini would be proud.
Re: OPEC Cuts another 1 million bpd
Today's oil price volatility makes no sense until you realized that computers are doing most of the trading.
Trading Economics:
"WTI crude futures fell more than 3% to $75 a barrel on Thursday, ending a two-day upward trend as investors digest the latest OPEC+ meeting. While the cartel collectively agreed to an additional 1 million barrel-a-day output reduction, individual members will announce their specific cuts. Saudi Arabia is expected to extend its own voluntary cut of 1 million barrels a day. Meanwhile, Brazil is set to join the alliance next year, planning to increase its output to 3.8 million barrels a day. This development comes amid concerns about oversupply and a challenging economic environment, which have contributed to a recent weakening of the oil market. WTI crude futures fell more than 6% in November, extending a 9.4% loss in October."
Brazil joining OPEC does not increase the global oil supply. It actually gives the cartel more control over supply.
Now it appears that the dip near $75 caused the computers to start buying.
Trading Economics:
"WTI crude futures fell more than 3% to $75 a barrel on Thursday, ending a two-day upward trend as investors digest the latest OPEC+ meeting. While the cartel collectively agreed to an additional 1 million barrel-a-day output reduction, individual members will announce their specific cuts. Saudi Arabia is expected to extend its own voluntary cut of 1 million barrels a day. Meanwhile, Brazil is set to join the alliance next year, planning to increase its output to 3.8 million barrels a day. This development comes amid concerns about oversupply and a challenging economic environment, which have contributed to a recent weakening of the oil market. WTI crude futures fell more than 6% in November, extending a 9.4% loss in October."
Brazil joining OPEC does not increase the global oil supply. It actually gives the cartel more control over supply.
Now it appears that the dip near $75 caused the computers to start buying.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: OPEC Cuts another 1 million bpd
This is just one of the "Weird Days" when the physical market says one thing and the Paper Traders take the futures market in the other direction. This morning the stop loss orders put on by the Shorts triggered a short covering rally. When the rally approached $80/bbl for WTI, computer algorithms fueled a selloff that began around 10:15AM ET.
The OPEC+ move to increase production cuts through at least Q1 2024 tells me that Saudi Arabia will do whatever it takes to support oil prices. Russia's voluntary cut of an additional 200,000 bpd is probably more the result of their citizens needing more space heating fuel this winter.
This is the Year of the Roller Coaster Ride for oil prices.
The Sweet 16 held up well and our High Yield Income Portfolio had a good day. BSM and STR closed only slightly lower.
The High Yield Income Portfolio is doing the best this year of our three model portfolios because Growth & Income funds are moving money into the sector. With this much commodity price volatility the stock prices may be range bound, so those dividends provide nice cash flow.
The OPEC+ move to increase production cuts through at least Q1 2024 tells me that Saudi Arabia will do whatever it takes to support oil prices. Russia's voluntary cut of an additional 200,000 bpd is probably more the result of their citizens needing more space heating fuel this winter.
This is the Year of the Roller Coaster Ride for oil prices.
The Sweet 16 held up well and our High Yield Income Portfolio had a good day. BSM and STR closed only slightly lower.
The High Yield Income Portfolio is doing the best this year of our three model portfolios because Growth & Income funds are moving money into the sector. With this much commodity price volatility the stock prices may be range bound, so those dividends provide nice cash flow.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group