Commodity Trade Mantra

Posts Tagged ‘OPEC Producers’

Oil Prices Drop After IEA Warns Production Freeze Is "Meaningless"

A deal among some OPEC producers and Russia to freeze production is perhaps “meaningless” as Saudi Arabia is the only country with the ability to increase output, a senior executive from the International Energy Agency (IEA) said. It’s more some kind of gesture which perhaps is aimed … to build confidence that there will be stability in oil prices.

Stop Blaming OPEC For Low Oil Prices

Why do we expect OPEC to cut oil production? The US has aggressively increased output. Much of the responsibility for the crash in oil prices stems from a massive increased output in the US shale patch, by around 4 million barrels per day between 2011 & the peak in 2015, nearly doubling production from 5.6 million barrels per day (mb/d) to 9.6 mb/d.

Time to Play the Rebound In Oil Prices

The oil industry is permeated in gloom right now because of oversupply & weak demand. Small producers are going out of business & a wave of energy-related bond defaults is about to wash over the fixed-income markets. But the oil majors are positioning themselves to benefit from the rebound of prices in late 2016 and early 2017. The time to play this rebound is now.

This Month Could Make Or Break The Oil Markets

October could be a crucial month for struggling drillers. With drillers undergoing credit redeterminations, October could see a wave of debt restructuring and cuts to credit lines, potentially forcing deeper cuts in the shale patch. More will be revealed about the trajectory of the U.S. shale industry – and by extension, the trajectory of oil prices – in the next few weeks.

OPEC Is Winning The Oil Price War Says IEA

The Saudi-led OPEC strategy to defend market share regardless of price appears to be having the intended effect of driving out costly, ‘inefficient’ production. That is because non-OPEC supply is contracting while OPEC is keeping production elevated. Low oil prices are “closing down high-cost production from Eagle Ford in Texas to Russia and the North Sea.

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