• 4 minutes Why Trump Is Right to Re-Open the Economy
  • 7 minutes Did Trump start the oil price war?
  • 11 minutes Covid-19 logarithmic growth
  • 15 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 18 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 2 hours KSA taking Missiles from ?
  • 11 mins How to Create a Pandemic
  • 6 hours There are 4 major mfg of hydroxychloroquine in the world. China, Germany, India and Israel. Germany and India are hoarding production and blocked exports to the United States. China not shipping any , don't know their policy.
  • 4 hours Trump eyes massive expulsion of suspected Chinese spies
  • 38 mins A New Solar-Panel Plant Could Have Capacity to Meet Half of Global Demand
  • 3 hours Today 127 new cases in US, 99 in China, 778 in Italy
  • 5 hours TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 9 hours Where's the storage?
  • 4 hours America’s Corona Tsar, Andrew Fauci, Concedes Covid-19 May Be Just a Bad Flu With a Fatality Rate of 0.1%
  • 6 hours Western Canadian Select selling for $6.48 bbl. Enbridge charges between $7 to $9 bbl to ship to the GOM refineries.
  • 11 hours Oxford Epidemiologist: Here’s Why That Covid-19 Doomsday Model Is Likely Way Off
  • 12 hours >>The falling of the Persian Gulf oil empires is near <<

Why Fundamentals In Oil Markets Haven’t Changed

Pipeline

Last week we wrote about Oil’s Big Week highlighting the importance of the OPEC+ and Trump/Xi G20 meetings which transpired in the last few days. Unfortunately the week’s events seem to have provided a short-term sugar high for markets but neither generated a fundamentally strong outcome for the oil.

On the OPEC+ side, we noted that traders seemed to be pricing in an expected production cut of about 1m bpd and that anything below 500k bpd or above 1.5m bpd would generate a bearish or bullish reaction. The surprise came in the bearish form as the Saudi’s have failed to get Russia on board with group production cuts on Thursday, but managed to secure a deal on Friday morning. The market sorely needs conviction from its primary exporters to reduce supplies and so far there’s a serious lack of cooperation on this front.

As disappointing as the OPEC+ meeting was on Thursday, the cartel managed to get its members and partners on board and agreed on a 1.2 million bpd cut. Despite the fresh deal, remain concerned about the health of the oil market- and the global economy- following the soft truce reached by Trump and Xi at their G20 meeting in Argentina. President Trump took to Twitter following the meeting and expressed a variety of contradictory signals but stock, bond and commodity markets seemed sick of the mixed messages.

In the U.S., the S&P jumped from 2,650 up to 2,800 after Trump announced that significant progress had been made…




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