Moody Markets

By: Peter Haralambakis / November 28, 2017

With only 2 days to go before the most anticipated decision from OPEC in recent times in regard to production cuts going forward, the mood has swung from bullish jubilation to bearish despondency.  Prior to this week, OPEC extending production cuts for another 9 months was an afterthought.  Fast forward to this week and headlines of doubt have surfaced and are starting to gain momentum.  Headlines like:  “OPEC meeting outcome more uncertain than usual – Goldman Sachs”; “We expect OPEC to extend deal until the middle of next year – Citigroup”; and “If production cut agreement ends in March, an estimated 2.4 million bpd year-over-year increase in world supply – Consultancy Wood Mackenzie”.  As of 12:15pm EST, WTI for January delivery is down $0.29 at $57.82, HO is down $0.0105 at $1.94, and RBOB is down $0.0216 at $1.7635.

CL Continuation-19.png

With prices near two and a half year highs and record net long positions, risks to prices are certainly skewed to the downside if OPEC and other key producers, including Russia, agree to only a 9 month extension with no other changes to production cuts.  In addition to that, TransCanada said yesterday it would restart the 590,000 bpd pipeline after getting approval from U.S. regulators.  Couple these uncertainties with the hustle and bustle of the holidays, no wonder our mood rings have turned from violet (very happy) to black (tense and nervous).  In the meantime, we await tonight’s APIs and tomorrows DOEs.  Once again, we must wait and see.


Categories: Daily Market Update


Peter Haralambakis

Written by

Peter Haralambakis

Peter Haralambakis is a Supply and Trading Business Development Manager at Guttman Energy with over 13 years of experience in commodities trading, analysis, and risk management in products ranging from Corn and Soybeans to Crude Oil Futures and Options to Financial and Physical Biofuels to Natural Gas and Natural Gas Liquids.


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.


Comments

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.

Categories

Contact Us