- Crude oil prices soar as OPEC reaches a deal to moderately increase production; WTI +3.3% at $67.69/bbl, Brent +2.7% at $75.07/bbl.
- Although results are not yet official, the headline increase is 1M bbl/day but, due to supply constraints in some countries, only ~600K bbl/day is expected to be added to the market - roughly in-line with market expectations.
- “Given the supply risks of Libya, Venezuela, and eventually Iran... the market sees this increment as something that’s not going to tilt it into bearish territory,” says Harry Tchilinguirian, global head of commodity markets strategy at BNP Paribas (PA:BNPP). “With OECD inventories now below their famous five-year average, prices will keep grinding higher.”
- ETFs: USO, XLE, OIL, UWT, UCO, VDE, XOP, DWT, ERX, OIH, SCO, BNO, DBO, ERY, DIG, BGR, GUSH, DTO, FENY, USL, IYE, DUG, DRIP, IEO, FIF, DNO, NDP, PXE, OLO, RYE, PXJ, SZO, CRAK, FXN, OLEM, WTIU, DDG, OILK, NANR, OILX, WTID, USOI, USOU, USOD, FTXN, JHME, UBRT, ERYY, DBRT, ERGF, OILD, OILU, USAI
- Now read: OIL Weekly: Is OPEC Tightening Done?
Original article