Markets rally on Saudis, Russians “talking”…

August 15, 2016 by Jim Colburn Leave a Comment

From Reuters (http://www.reuters.com/article/us-global-oil-idUSKCN10N03T):

“On Monday, Russian Energy Minister Alexander Novak bolstered hopes that oil producing nations could take action to stabilize prices, telling a Saudi newspaper that his country was consulting with Saudi Arabia and other producers to achieve market stability.”

There are skeptics:

“”The (OPEC) meeting is unlikely to yield anything because OPEC are caught in a squeeze,” David Hufton of oil brokers PVM wrote on Monday. “On the supply side it is their own increase in production that is prolonging the price depression but if they freeze or restrain production to lift prices they will stimulate competing non-OPEC supply and lose market share.””

Here is a longer term perspective of oil prices from barchart.com:

Have we found some short term equilibrium (an almost meaningless term in the oil market) between $40 and $50 until the oil market balances sully and demand?

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

Our associates bring decades of experience to the table, as they seek to help our clients understand the markets. CRG will distill the myriad of pricing variables mentioned above into coherent research that is to-the-point and tailored to a clients hedging or pricing needs. In addition, CRG is available for consulting assignments and speaking engagements. CRG does not manage money or trade for itself.

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