Oil And The OPEC Meeting – Something To Believe In

Summary

The two-day compliance meeting of OPEC and non-OPEC producers concludes today.

Oil prices have drifted lower ahead of the result, out of fear of a bad result.

It’s a trend we’ve seen recently, but we expect to turn around as tangible factors for sustained oil price rise have developed.

I’m looking for a well developed and worded result from this week’s meeting.

If the producers produce a surprise, it could also be a positive one.

Oil dipped yesterday before recovering, and it is meandering today as anxious energy market investors fear a bad outcome from the OPEC meeting in Abu Dhabi. Oh ye of little faith, do you really think OPEC will let you down? All that needs to come of the OPEC compliance meeting is some reassurance, preferably supported by substantive game-plan for non-complying members of the consortium. And if the oil producers provide a surprise, it could also be positive, in my opinion.

Security	08-07-17
United States Oil (NYSEARCA:USO)	-0.3%
iPath S&P GSCI Oil (NYSE: OIL)	0.0%
Energy Select Sector SPDR (NYSE: XLE)	-0.8%
SPDR S&P Oil & Gas E&P (NYSE: XOP)	-1.6%
Exxon Mobil (NYSE: XOM)	-0.1%
Chevron (NYSE: CVX)	-0.3%
ConocoPhillips (NYSE: COP)	-0.9%
Phillips 66 (NYSE: PSX)	-0.6%
Rice Energy (NYSE: RICE)	-1.5%
Pioneer Natural Resources (NYSE: PXD)	-4.2%
Cabot Oil & Gas (NYSE: COG)	-1.4%
EOG Resources (NYSE: EOG)	-0.9%
Chesapeake Energy (NYSE: CHK)	-4.0%

Oil prices have tended to trend upward lately after shedding price on fear in anticipation of events. It seems traders are unsure of recently gained ground, and so they take risk off ahead of data and then they trade higher in relief of it. That’s because a negative tone still pervades the energy pit, but that should be changing. I outlined why in my recent report, Why Oil Prices will Breakout – The Demand Driver.

Still, ahead of last week’s U.S. petroleum inventory data, and again ahead of this week’s OPEC meeting conclusion, oil prices are showing concern. Oh, come all ye faithful and buy oil on this weakness, because it has got some tangible reasons to rise in the months ahead. I’ll be discussing another one of those factors in detail either today or tomorrow here. We already know the global economy is stepping up its pace, which requires an increase in energy demand and use.

seeking alpha

12 Comments on "Oil And The OPEC Meeting – Something To Believe In"

peaktard on Tue, 8th Aug 2017 8:09 am

i’m against this type of tarding. as a tard who managed to mater basic algebra i see that CHK is a penny stock. its percentage doesn’t mater.

if i give u 100% of $1 does it matter?

this is why i invend the tard concept. i would humbly accept a prize.

Dredd on Tue, 8th Aug 2017 8:13 am

New US Government report, required by law, shows US scientists are ahead of the IPCC (Government Climate Change Report – 10).

And way ahead of OPEC.

bobinget on Tue, 8th Aug 2017 9:54 am

NPR reports terms ‘Climate Change’ or Global Warming shall not appear in US government documents. Instead, use wording like ‘erratic or turbulent weather’. If the entire East Coast goes underwater, call it ‘unusual weather’.

Should California float off into the Pacific,
call it ‘tax evasion’.

As for plummeting share prices, one thing for sure, should the overall bull market take a cold shower
oil prices won’t fall off a cliff, just a WS curb.

Outcast_Searcher on Tue, 8th Aug 2017 11:08 am