OPEC deal concerns:

While oil extending Wednesday’s ~9% rally, no shortage of skepticism surrounding OPEC’s deal to reduce production by 1.2M bpd to 32.5M bpd. Biggest area of concern not surprisingly revolves around compliance. Analysts noted that OPEC has a poor track record when it comes to compliance, with observed production cuts at 60-70% of announced cuts. Non-OPEC […]

Oil up big on OPEC comments:

Oil rallying sharply today on a flurry of upbeat comments heading into the OPEC meeting in Vienna, though devil remains in the details. Saudi Arabia Oil Minister Al-Falih said there is a good chance for a deal. However, there are still concerns about a more hawkish stance from Saudi Deputy Crown Prince Mohammed bin Salman, […]

OPEC skepticism:

Lot of skepticism surrounding OPEC’s ability to finalize a preliminary production cut deal it reached in late September at tomorrow’s meeting. No meaningful progress made at a 10-hour meeting on Monday. Iran and Iraq still said to be the stumbling blocks facing a deal. In terms of the former, Bloomberg reported that it proposed a […]

OPEC uncertainty:

Oil volatile with latest flurry of OPEC headlines. Follows a ~3% selloff on Friday on news Saudi Arabia pulled out of a meeting scheduled for today between OPEC and non-OPEC producers. Meeting was subsequently canceled as Saudis highlighted need for OPEC to first reach an internal agreement on a production cut deal. Biggest development over […]

Oil higher again:

Oil higher on optimism surrounding OPEC’s ability to finalize a preliminary production cut agreement reached back in late September. Nothing particularly incremental, though a member of the Nigerian delegation said that OPEC is likely to reach a consensus over the implementation of a deal at technical meeting today. There was also some positive commentary out […]

Oil rallies on deal optimism:

Oil snapped a four-week losing streak last week, rallying over 5% on some renewed optimism surrounding the prospects for OPEC to finalize a production cut deal. Sentiment has been further underpinned by weekend commentary. WSJ noted Iranian Oil Minister Zangeneh said that OPEC is “highly likely” to reach a final agreement at its 30-Nov meeting. […]

Low-quality OPEC deal expected:

OPEC under significant scrutiny with less than two weeks to go before a 30-Nov meeting intended to finalize a preliminary agreement reached in late-September to cut production to 32.5M-33.0M bpd. Note that OPEC produced 33.6M bpd in October. Headlines have been fairly volatile in recent days and while consensus still revolves around the likelihood that […]