Wow, the sages at Goldman are out with research suggesting crude could be heading all the way down to the ‘low 40’s’ in the event the criminal cartel, dubbed OPEC, are unable to agree to a price fixing scheme. This is some valuable research. Thanks Goldman!
Hey look at all of that extra OPEC supply. I am sure U.S. production in the shale looks similar (wink).
“The lack of progress on implementing production quotas and the growing discord between OPEC producers suggests a declining probability of reaching a deal on November 30,” Goldman analysts including Damien Courvalin wrote in a note dated Oct. 31. Obstacles to a supply agreement remain formidable, Greg Sharenow, a Pimco portfolio manager, said in an e-mailed note on Tuesday.
The Organization of Petroleum Exporting Countries is due to meet in Vienna to implement the first supply cuts in eight years and get other producers from outside of the group to join, notably Russia. Brent crude extended losses below $50 a barrel on Monday after weekend talks failed to yield concrete details on an accord to reduce the global crude surplus and stabilize prices.
“The lack of an agreement so far has pushed oil prices sharply lower, with weakening oil fundamentals warranting oil prices in the low $40s a barrel in our view if OPEC is unable to deliver a convincing agreement,” the Goldman analysts wrote.
Here’s the redpilled truth: stocks cannot do anything meaningful until after the election. We ca talk all we want about OPEC and valuation, but it won’t mean a thing as long as the election looms.
Both gold and silver are sharply higher this morning, while WTI and futs are a snoozer.
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