• 6 minutes Will the trade war hurt US project builds? Not if the US does it right.
  • 12 minutes OIl Targets from Experts to $300, vs. imho $52
  • 18 minutes Oil prices going down
  • 19 hours U.S. Challenges 5 WTO Members imposing Illegal Tariffs Against U.S. Products
  • 5 hours Chile Becomes The Latest Country To Commit To 100% Renewables
  • 16 hours Germany: We Can No Longer Fully Rely On U.S. White House
  • 14 hours Well from $74 we hit 67.xx now what?
  • 12 hours Venezuela, the largest oil reserve in the world, faces deep shortages of motor oil
  • 4 hours Does S Arabia Have 2 Mln Barrels in Spare Capacity?
  • 1 hour Chartist predicting a $1 fall, after WTI drops $10
  • 11 hours Where 3 Million Electric Vehicle Batteries Will Go When They Retire?
  • 16 hours Trade War of 1930s, Extended the Great Depression
  • 12 hours Rio Tinto Says $4-Million Goodbye to Coal
  • 20 hours Is Libya the current Iran for oil markets?
  • 19 hours Iran's President Warns Over U.S. Push For Countries To Stop Buying Oil From Iran
  • 19 hours Total Trade War: U.S. Threatens Tariffs On $200 BN of China Goods
  • 19 hours Apple's $300 fund in China
  • 16 hours Kaplan Says Rising Oil Prices Won't Hurt US Economy
Alt Text

Bullish Sentiment Soars As Oil Outages Mount

Oil markets appear to be…

Alt Text

Libyan Oil Production Is Only Heading Lower

Libya’s two National Oil Companies…

Alt Text

Iran Threatens To Close Crucial Oil Chokepoint

Iran’s threat to close the…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

A Hot, If Not Very Sexy, Take On The OPEC News

Refinery

As I write this piece, we are still awaiting the official announcement of the outcome of the OPEC+ meeting in Vienna, but given the organization’s penchant for controlled leaks, and given that every major news organization is reporting a million barrel a day increase in output it is fair to assume those reports are accurate. So, as always, the question is what this means for traders and investors, and how can they profit from it?

(Click to enlarge)

Any analysis of the potential impact must start with what didn’t happen. Contrary to what was said by some going into this meeting, the different objectives and needs of OPEC’s various members did not result in the breakup of the cartel. For future reference, nor is it likely to any time soon. OPEC is, despite being inherently as anti-free-market as you can get, a great example of why capitalism works. When nations as diverse and divided as Saudi Arabia, Iraq, Iran and Venezuela can come together to maximize profit it is an indication of the power of the greed that moves markets, and that power should never be underestimated.

Secondly, as this Wall Street Journal article accurately states, while the crude oil output limits have been technically raised by a million barrels a day, the reality will fall well short of that number. The main proponents of an increase, Russia and Saudi Arabia, both have the existing capacity to increase immediately, but that is not true everywhere. By dividing…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News