- U.S. crude oil prices tumble back below $50/bbl as investors resume doubts about OPEC’s ability to cut production and make a dent in the global supply glut; WTI now -3% at $48.64/bbl, Brent -2.9% at $51.20 after hitting a nearly 10-week high at $50.43/bbl earlier in the session.
- A Reuters survey released yesterday said July OPEC production jumped to the highest level since December, as Libya increased supply and some members slipped in compliance with the deal.
- “At the current OPEC production level, the oil market is likely to show a supply deficit of only ~500K bbl/day in the second half of the year. In other words, OPEC will not achieve its goal of completely eliminating the oversupply by year’s end,” Commerzbank (DE:CBKG) analysts say.
- Cargo tracking data also has indicated that OPEC exports increased in July despite the production deal, according to analysts at Schneider Electric (PA:SCHN).
- ETFs: USO, XLE, OIL, UWT, UCO, VDE, DWT, ERX, SCO, OIH, BNO, DBO, ERY, DIG, DTO, BGR, USL, FENY, DUG, IYE, FIF, DNO, OLO, RYE, SZO, PXJ, FXN, OLEM, CRAK, DDG, NANR, OILK, WTIU, OILX
- Now read: XLE And XOP: Comparing 2 Popular SPDR Oil Stock ETFs
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