Bears Awake After Thanksgiving Holiday

By: Mike Dombroski / November 25, 2016

Trading will be thin today as the oil markets will be closing at 1:30 EST. However, this didn’t prevent the bears from showing up after the Thanksgiving holiday.

Earlier this morning, Reuters reported that Saudi Arabia will not be attending a non-OPEC meeting in Vienna on Monday, two days before the OPEC meeting. The market interpreted this as bad news because if OPEC was planning a cut, they would surely attempt to encourage non-OPEC producers to cut as well. Volatility will surely pick up early next week as the OPEC representatives begin to arrive in Vienna and speak with the media. We urge caution to our customers who are thinking about longer term buys before the meeting, especially with OPEC and Russia still producing at record rates. Current odds in the industry indicate a 50% chance of a production cut agreement. Does anyone have a coin to flip?

Crude prices are also under pressure from the strength in the dollar index. Despite being down today, it’s still trading at a 13-year high at 101.445. WTI crude oil last trades at $46.78/bbl, down $1.18/bbl on the day.

Enjoy your leftovers!

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Mike Dombroski

Written by

Mike Dombroski


Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


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