RE:RE:RE:RE:Possible more opec+ cut on Nov 26 I think an extension is already assumed and won't really move the needle. Additional cuts will have a smaller impact than before.
With the increasing US production, the narrative is that OPEC cuts are being replaced by the US, so overall production is remaining steady but spare capacity is increasing. The narrative is now that while the rig count and ducs are decreasing; better drilling technology is increasig well output, decreasing decline rates, and doubling recoverable reserves. The financial market will continue to decide the price of WTI and this won't change until the physical market hits zero somewhere.
Anschutz wrote: Well for consideration here's how I think it could play out.
OPEC announces either a cut or further extension of cuts, believing it will cause prices to rise. In response the US and other western media push the narrative that it is proof the economy is slowing and trot out various talking head 'experts' that recession is real and sky is falling. Paper market does exactly what the USA wants, which is to lower the price of oil to maximize profit as they work to refill the SPR.
I'm not convinced we're through the worst of the downdraft in WTI. Even with the uptick last Friday, WTI and Brent have not broken through to reverse the trend that began in October.
This week should be interesting for the price of oil and Canadian E&Ps.
GLTA
Moemoney42 wrote: I don't buy into that narrative.. consumption is at its highest level ever and the threat of a recession is starting to soften IMO..
The last data shows that and I think the Fed is going to wait to see how these multiple increases pan out.. remember those interest rate increases are just now starting to ripple through the economy and employment is still at an all time low in the US..
There's too many speculators about the future demand curve and the longest "anticipated" recession in history.. so I'd say demand growth might SLOW, but it won't reverse.. its still growth and that's what counts.. IMO