• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 2 hours OPEC will consider all options. What options do they have ?
  • 11 hours Maybe 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on funding terrorism, wars, suppressing dissidents, building nukes * Too late now
  • 17 hours Russia Accuses U.S. Of Stoking Tensions With Missile Test
  • 3 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 8 hours What to tell my students
  • 41 mins With Global Warming Greenland is Prime Real Estate
  • 12 hours TRUMP'S FORMER 'CHRISTIAN LIAISON' SAYS DEEPWATER HORIZON DISASTER WAS GOD'S PUNISHMENT FOR OBAMA ISRAEL DIVISION
  • 9 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 4 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 8 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 1 day In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 13 hours Flaring is at Record Highs in Texas
  • 24 hours Get First Access To The Oilprice App!
Alt Text

Oil Rises As Market Awaits Saudi Move Counter Glut

Despite another gloomy demand forecast…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

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:




Download The Free Oilprice App Today

Back to homepage


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
Download on the App Store Get it on Google Play