You probably heard, OPEC stuck to its word and agreed to cut crude oil production. What followed was the biggest short squeeze since 2009. So, what’s next?
OPEC has claimed it will ‘freeze’ crude oil supplies all year. It’s a manipulative tactic, aimed to artificially drive up crude prices.
Unfortunately for OPEC, their manipulation has started to prove counter-cyclical. The crude oil price surge looks ready to backfire.
just as Saudi Arabia and OPEC’s decision to increase oil production caused the oil price to slump, the apparent decision to cap production has helped boost the oil price.
Thanks to the supply freeze, global investment bank Goldman Sachs believes that crude oil should be US$10 per barrel higher. If that happens, you could say that crude is in a bull market. I wouldn’t get too excited…
From the European Union’s point of view, the relationship between Russia and Greece might already be too close for comfort.
The rally in oil at the start of this week was a sigh of relief for big oil producers. Finally commodities were breaking out of their trends. But it’s a smaller oil and gas producer, AWE Ltd [ASX:AWE], that is making headlines.
You probably don’t even need me to tell you. Any stock associated with the energy industry is getting clobbered right now.
Demand for oil in China is expected to grow 3% this year. So in theory Iran could take the market share of whatever growth in oil demand comes out of China.
Crude has fallen by 77% in the past 18 months. So, with most of damage done, we’re likely to see a bounce in the crude oil price this week.