• 3 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 5 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 9 minutes This Battery Uses Up CO2 to Create Energy
  • 12 minutes Shale Oil Fiasco
  • 2 hours Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 2 days Indonesia Stands Up to China. Will Japan Help?
  • 15 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 1 day US (provocations and tech containment) and Chinese ( restraint and long game) strategies in hegemony conflict
  • 14 hours Beijing Must Face Reality That Taiwan is Independent
  • 3 hours Let’s take a Historical walk around the Rig
  • 2 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 2 days Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 38 mins Trump has changed into a World Leader
  • 1 day Might be Time for NG Producers to Find New Career
  • 2 days Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
  • 3 days Phase One trade deal, for China it is all about technology war

The OPEC Meeting And How To Position For It (Hint: Don’t)

rig

OPEC meetings, or more recently the meetings of “OPEC and friends”, are always big news in the energy sector. The price of oil is the most important factor in the profitability of energy companies, even those not in the oil business directly. It sets the standard for energy pricing generally, so cannot be ignored, and as OPEC’s express purpose is to influence price we all have to pay attention when they meet and speak. This weekend’s gathering in Algeria may be even more important than usual though, and traders will be watching closely. Traders are risk takers, of course, so the temptation for many will be to go into the weekend with a position in an attempt to profit from the announcement that will follow the meeting. In this case though, that would be a mistake.

There are some special circumstances surrounding this meeting that make the decision, and even the ability of the countries concerned to execute that decision, hard to predict. The first of those is where oil prices currently sit.

(Click to enlarge)

As I’m sure you are aware, oil, both WTI as seen above and Brent, has been climbing steadily for over a year and is now nudging multi-year highs. That has at least in part been OPEC’s doing. The agreement to cut output signed by members and several other major producing countries, most notably Russia, has had the desired effect. In fact, it could be said that it has been effective beyond the wildest dreams of…




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