- Crude oil prices are pummeled as OPEC appears on the verge of reaching an agreement to increase production; U.S. WTI -1.5% at $64.69/bbl, Brent -1.7% at $73.47/bbl.
- After initial resistance from some OPEC members including Iran and Venezuela, a consensus on raising output now seems likely.
- “It does seem that Iran and the other OPEC members are acknowledging there has to be some sort of compromise and they are probably better off agreeing to a modest increase in production rather than the deal collapsing,” says Tom Pugh, commodities economist at the Capital Economics. consulting firm.
- Saudi Arabia Energy Minister Khalid al-Falih says that as the world is likely to face a large oil supply deficit in H2 2018, a substantial production increase from OPEC will be required to prevent a market squeeze, adding that "We will release supply... One million [bbl/day] sounds like a good target to work with."
- 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
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