WTI and Brent futures moved up around 80 cents after the latest OPEC meet and great headlines. One wonders what goes through the minds of OPEC, winding up their latest compliance meeting and same old mantras.
Both WTI and Brent all futures have moved up around 80 cents after the latest OPEC meet and great headlines. One wonders what goes through the minds of OPEC, winding up their latest compliance meeting and same old mantras. Though the narrative has changed from production to exports, funny that. Producers are really ready to give up market share and lower revenue?
A couple of stand outs for mine, Saudis say ‘there will be no free ride for other countries who are overproducing’, Ahem Prince’s what about yourself there? Some rationale at least from Russia’ Novak saying OPEC “will take output from China and USA into account at next meeting.” Shale has been on expanding aggressively, the latest earnings from Haliburton $HAL and Schlumberger $SLB show just how much.
What Saudi’s Promise:
- Will cap exports at 6.6mln bpd vs 7.6mln bpd in August 2016
- Will continue to forcibly demand good compliance with cuts
- Next export cut by Saudi yy constitutes around 1mln bpd
What Russia’s Novak Says:
- All countries should show 100% compliance (OK that’s going well)
- Committee has recommended to extend cuts after Q1 2018 if needed
- Meeting in November should establish next steps on how to balance market
Wahat Kuwaiti Oil Minister Says:
- Can call for extraordinary meeting if needed to change production parameters
- Next monitoring committee is scheduled for 21 August
Source: Reuters, BBG
From The TradersCommunity News Desk