- Crude oil futures erase the gains they made on Friday following OPEC's decision to cut production: January WTI settled -3.1% to $51/bbl after rising 3.3% last week, and Brent -2.8% ended at $59.97/bbl following last week's 3.7% jump.
- "It didn’t take long for Friday’s OPEC+ planned production to get priced in as focus turned back to the potential impact of worsening U.S.-China trade tensions," says Colin Cieszynski, chief market strategist at SIA Wealth Management.
- Oil’s gains risk being quelled by uncertainty over how the OPEC+ coalition will implement its deal to cut output, Morgan Stanley (NYSE:MS) analysts say.
- While prices can continue to rise as the pact significantly decreases the possibility of a glut, crude’s four-year high reached in early October is unlikely to be reached again in coming quarters, Stanley says.
- Goldman Sachs (NYSE:GS) says the oil market may rebalance in H1 2019 as Iranian production is squeezed by U.S. sanctions and a lack of new pipeline out of the Permian Basin, but the firm is less optimistic about H2 as "OPEC+ attempts to sequentially grow and given an expected stabilization in Iran production, the unleashing of the Permian growth and back-end loaded growth in Canada, Brazil and Norway."
- 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, ERYY, ERGF, OILD, OILU, USAI
- Now read: The Latest Issues Facing Crude Oil
Original article