• 5 minutes Global Economy-Bad Days Are coming
  • 8 minutes IT IS FINISHED. OPEC Victorious
  • 14 minutes Venezuela continues to sink in misery
  • 17 minutes Could Tesla Buy GM?
  • 7 mins Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 7 hours OPEC Cuts Deep to Save Cartel
  • 3 mins Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 19 hours Price Decline in Chinese Solar Panels
  • 7 mins How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 10 hours U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 5 hours What will the future hold for nations dependent on high oil prices.
  • 3 hours Sleeping Hydrocarbon Giant
  • 8 hours And the War on LNG is Now On
  • 3 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 5 hours Air-to-Fuels Energy and Cost Calculation
  • 20 hours Rigs Down
Alt Text

Global Market Turbulence Caps Oil Prices

Oil prices only rallied modestly…

Alt Text

Oil Prices Crash As OPEC+ Scrambles At 11th Hour

Oil prices headed lower on…

Alt Text

Do Falling Oil Prices Help Or Hurt The U.S.?

One of the biggest fallacies…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

Short Bets On Oil Spike Ahead Of OPEC Meeting

Short bets on Brent crude jumped by the most since June last week, signaling the return of uncertainty that OPEC will agree to extend the oil production cut deal it sealed a year ago.

Data from CFTC cited by Bloomberg revealed that hedge funds increased their bearish bets on the international crude benchmark by 8.7 percent in the week to November 14. Interestingly, speculators were more bullish on WTI, with bets on a price increase for the U.S. benchmark rising by 10 percent.

At the beginning of this week, however, prices remained relatively unchanged from Friday as traders are wary of making any large bets on either benchmark ahead of the OPEC meeting next week. Reuters quoted traders as saying the market uncertainty was too high to motivate any large trades.

Meanwhile, the effect that heightened geopolitical tensions in the Middle East were having on oil prices seems to be subsiding in the absence of any further escalation in hostility. One analyst Bloomberg quoted said,"We haven’t seen more conflict. For prices to get a lot higher, you have to see a meaningful increase in disruptions—and we haven’t."

These tensions were one major factor behind the latest price rally, helped by upbeat forecasts about supply and demand. However, last week the International Energy Agency poured cold water on optimistic expectations by revising downwards its oil demand growth forecast for this year and next, sparking the usual worry these revisions cause. Related: Musk’s “Hardcore Smack-Down” To Gasoline Vehicles

Furthermore, there are reports that Russia may be unwilling to join another deal extension beyond March 2018 as Brent at US$60-65 suits the world’s top producer just fine. That’s on top of continuing growth of production in the U.S. shale patch and forecasts from the IEA that shale oil will rule supreme in the medium term.

In a note to clients last week, Morgan Stanley said that the OPEC meeting will be the single most important oil price driver through the end of the year, with the possibility of a delay in the extension decision potentially serving as the strongest headwind for prices.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment
  • Silvia SIlverstein on November 20 2017 said:
    Three years ago OPEC didn't cut on Thanksgiving weekend and prices tanked. Could history repeat itself? I think OPEC learned a valuable lesson three years ago this time will continue to keep the ball rolling.

    If your investing against that perhaps you should look into Bitcoin swing trading.
  • Edmon William on November 21 2017 said:
    Silvia Silverstein -

    If you think OPEC didn't intend for the oil to tank then you're drinking OPEC's coolaid.
    It's all an act to control the price of oil - they wanted it to tank 3 years ago.

    Just like last year when they failed to make a deal, prices went down for a day but recovered in 3 days and went to new recent highs. The ultimate bear trap.

Leave a comment




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