• 4 minutes Your idea of oil/gas prices next ten years
  • 7 minutes WTI Heading for $60
  • 13 minutes Could EVs Become Cheaper than ICE Cars by 2023?
  • 49 mins Pros and Cons of Coal
  • 2 days Pence says South China Sea Doesn't Belong To Any One Nation
  • 6 mins Why does US never need to have an oil production cut?
  • 2 days Anyone holding Nvidia stock?
  • 2 hours US continues imports of Russian gas which it insists Europe should stop buying
  • 5 hours Is California becoming a National Security Risk to the U.S.?
  • 2 days Germany Discusses Lifting Ban on Deporting Syrians
  • 7 hours Regular Gas dropped to $2.21 per gallon today
  • 51 mins Warren Buffett
  • 19 hours Trump administration slaps sanctions on Saudis over Khashoggi's death
  • 2 days I Believe I Can Fly: Proposed U.S. Space Force Budget Could Be Less Than $5 Billion
  • 1 day Commission: U.S. Could Lose Wars With Russia, China
  • 2 days China Claims To Have Successfully Developed a Quantum Radar That Can Detect 'Invisible' Fighter Jets
Dan Dicker

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

How To Trade OPEC’s Production Boost

Tanker

I’ve been waiting for the last minute to write this column, waiting on the decision of OPEC in Vienna this morning. While the final decision isn’t official, it seems that the cartel has agreed to a graduated 1m barrel a day increase, which will deliver a real 600,000 barrels a day more into the global marketplace.

This will be viewed as a victory for the Saudis – and a very bullish sign for oil and oil stocks.

It still remains to be seen whether the Russians will agree to this proposal, but my thesis all along was that the Saudis were much more willing to deliver much of the proposed increase to the Russians in order to keep the OPEC and non-OPEC deal together. And I am convinced that they wouldn’t have even begun to negotiate with Iran on a 600k increase without knowing that they could get the Russians to go along with the deal first.

In terms of the global supply chain for oil, 600,000 barrels a day does not make up nearly for the shortfall from Venezuela, let alone the coming shortfalls from increased sanctions against Iran, the continued strife in Nigeria and Libya and finally, the coming infrastructure bottleneck that’s already limiting flow in the Permian basin.

We’ve been very clear that this was the strongest bullish case for oil going forward, and another indication that U.S. shale oil supply is far from being capable of responding quickly to supply changes – indeed, proving again the subtitle of my…

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
-->