Tag: opec
Oil Is Breaking Out, How About Oil Company Stocks?
In late 2016, OPEC agreed to cut production in order to address an oversupplied oil market. Global crude oil inventories had reached record highs, and the price of oil had crashed. OPEC’s strategy is having the desired effect. Over the past year, despite strong U.S. shale production growth, global inventories have steadily declined. In response, […]
An OPEC Deal Extension Isn’t As Simple As It Sounds
It’s been six months now that oil prices have been reacting to OPEC, first to the possibility of an agreement, and then to the production cut deal itself, forged by OPEC to rebalance the market. The deal–initially aired as ‘an agreement to agree on a deal’ in September and signed at the end of November—will […]
OPEC Oil Prices Hit Energy ETFs
Recently, the members of Organization of Petroleum Exporting Countries (OPEC) met. They decided to continue pumping oil at a record pace and let OPEC oil prices fall as the supply glut widens. The immediate reaction to the decision had a negative impact on oil prices. The price of a barrel of WTIC crude oil plunged […]
Which Way Are Oil Prices Headed?
Just two weeks ago I wrote about falling oil prices. Gas prices had crashed below the $2 mark. Oil was trading below $50 a barrel for the first time in months. The inflation threat which built all summer long has disappeared. Now the big concern is deflation and the global economic slowdown. Believe it or […]
Oil & Gas ETFs
I was driving into the office earlier this week. It was like any other Monday. Stop and go traffic was grating on my nerves. I’d already emptied my to-go mug of coffee. The only thing on the radio was blather. To say the least, it was the start of another workweek. Then the news report […]
Oil Prices To Fall Further Despite Production Cuts
Did you see the news today about OPEC? We’re entering a global recession, and they cut oil production by 1.5 million barrels a day. OPEC (Organization of Petroleum Exporting Countries) for those of you who don’t know is a global cartel of oil producing nations who meet regularly to set production levels. They have the […]
Short Term Direction Of Oil Prices
Yesterday I had a very interesting conversation with a good friend. He had been following the markets very closely and wanted to know what I thought about oil. With prices now actively trading above $100 per barrel, several market watchers including my friend thought prices were poised to fall in the short term. He cited […]
