• 4 minutes Some Good News on Climate Change Maybe
  • 7 minutes Cuba Charges U.S. Moving Special Forces, Preparing Venezuelan Intervention
  • 12 minutes Washington Eyes Crackdown On OPEC
  • 15 minutes Solar and Wind Will Not "Save" the Climate
  • 5 hours Most Wanted Man In Latin America For AP Agency: Maduro Reveals Secret Meetings With US Envoy
  • 6 hours And for the final post in this series of 3: we’ll have a look at the Decline Rates in the Permian
  • 15 hours Amazon’s Exit Could Scare Off Tech Companies From New York
  • 22 hours Prospective Cause of Little Ice Age
  • 1 day Former United Nations Scientist says the UN is lying about Global Warming and Sea-Level changes
  • 17 hours And the War on LNG is Now On
  • 15 hours L.A. Mayor Ditches Gas Plant Plans
  • 6 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 2 days Maduro Asks OPEC For Help Against U.S. Sanctions
  • 2 days Qatar Petroleum, Exxon To Proceed With $10 bln Texas LNG Project
  • 1 day Solar Array Required to Match Global Oil Consumption
  • 1 day Europe Adds Saudi Arabia to Dirty-Money Blacklist
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

The Oil Market Is Destined To Re-Balance

Rigs

It’s been one week after the ‘magic’ oil supply deal was extended between OPEC members and Russia and it’s been followed by just about the most pessimistic response I’ve ever seen to bullish news.

Now as a trader, no one is more familiar with the axiom to ‘buy the rumor and sell the news’, so this drop in oil prices and even more vicious drop in oil stocks should not have come as much of a surprise to me.

But quite frankly, it did, as has the pessimism that has surrounded the oil markets since the announcement in Vienna. I suppose it’s an easy position to take; after all, if a combined OPEC/Russian deal to limit production through the Spring of 2018 can’t make prices go higher, what can?

I’ve seen analyst after analyst quaking in their boots over the continued production of U.S. frackers and the unintended consequence of derailing the OPEC deal and keeping prices low.

Others continue to wonder whether OPEC could have cut even more to out balance whatever increases U.S. producers were going to deliver.

Others have even managed to challenge the Saudis themselves, calling into question their strategy of re-balancing global oil, either suggesting that the Saudis work more like Central Banks in telegraphing their long-term intentions, or just abandoning production guidelines entirely and forcing some well-deserved bankruptcies to remove uneconomic oil production the old-fashioned way.

The…

To read the full article

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

RegisterLogin



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