The “credible OPEC agreement” oxymoron…

November 13, 2016 by Jim Colburn Leave a Comment

Oil prices have traded down to around $43 which is right on an area of technical support… Can it hold here? Here is the chart from barchart.com:

Optimism over some credible agreement from OPEC’s November 30th meeting has evaporated… Recent estimates of OPEC production for October show continued increases led by Libya, Nigeria and Iraq… Implied volatility is on the rise (the yellow line) a normal occurrence during oil price weakness:

17 days is a long way away, but oil markets are already beginning to price in the next main event.. And, prospects aren’t looking to good (for bulls)…

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.

Reader Interactions

Leave a Reply Cancel reply