Crude Flips By A Dollar Per Barrel on OPEC Lip Service

By: Mike Dombroski / November 4, 2016

Earlier today a report said Saudi Arabia threatened to raise its production from 11MMbpd to 12MMbpd and to even skip the OPEC meeting November 30th in an effort to strong-arm other OPEC members into a comprehensive production cut. This comes after a Reuters survey estimates that OPEC’s October production rose to 33.8MMbpd, a record high. As a result, WTI December crude prices tumbled $1.09/bbl to $43.57.

However, within an hour of that information being reported, OPEC Secretary General Mohammed Barkindo said that report was false. Crude prices quickly jumped about $1/bbl to trade approximately flat on the day. The OPEC jawboning will only continue as we inch closer to the meeting later this month, adding to the price volatility that we’ve seen.

December WTI traded as high as $52.22 this month, but broke key $45 support yesterday as traders continue to doubt any hope for an OPEC production cut. U.S. crude inventories increased by a record 14.4MMbs last week, further adding to the bearish sentiment. The next support level is $42.72; we are trading $44.01 at writing. An OPEC no decision could easily see the price drop to $40 or lower.

11-3-16 settle-1.jpg

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.


Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.


Contact Us