RE:Tomorrow In my view this is a monumental day
A 2 million barrel cut to the opec+ plus quota
Given how many of the members are not at their quota it's hard to know how many barrels are going to be removed
It looks like Saudi Arabia, UAE and maybe Kuwait. So 500-600,000 boe per day ish
They can add them back anytime they want - as this cut amounts to real spare capacity. Or so is assumed
Most significant in my view is OPEC (ie Saudi Arabia) has switched sides. They said they would. They gave fair warning. Then they did it
Just like Russia gave months of warnings to Biden and Ukraine. They said what they would do. Then they did it
Earlier this year Biden started a physical war in Europe. Today he got an economic war
Biden was powerless to stop the Saudis from launching their economic nukes
Whsts Biden to do next - have a temper tantrum? Blame the Russians? Blame Trump? He needs a distraction if some kind - will he blow something up?
Some how I doubt he'll decide to approve the keystone pipeline boarder crossing (that would be a smart counter to OPEC's move).
In all the excitement - it's easy to miss todays EIA report. Big draws to oil, gasoline and diesel. No increase in oil production (factoring in the expected revision in these estimated production numbers the US has only increased production by about 50,000 barrels so far this year - it went up and now it's coming down. Looks more and more like peak oil production
With all of this - US job growth looks to be more than 200,000 last month (official confirmation on Friday)
What's the take away? It seems positive for Canadian producers like OBE.
Someone was buying short term US treasury bonds over the last two days. Was it a short squeeze - or was it the US Fed? I suspect the former.
The Fed seems cornered now. It seems that anything other than a smaller interest rate hike at their next meeting could break an important piece of their financial system
Today may turn out to be the start of the new world order. But not the one the Club of Rome / WEF / UN want - but the one they created