Portfolio Update
New Energy
By
Elliott H. Gue, on Jan. 19, 2017
The big story for energy markets in the first half of 2017 will be a stronger-than-expected surge in US shale oil production that keeps the lid on global oil prices.
On Nov. 30, OPEC member states agreed to cut production by a combined 1.2 million barrels per day, led by an almost 500,000 barrels per day cut from Saudi Arabia. Further, major non-OPEC producers agreed to an additional 560,000 barrels per day in curtailments, driven by a 300,000 barrel per day cut from Russia.
As the agreement went into effect, West Texas Intermediate (WTI) oil prices immediately surged from about $45 per barrel just prior to the agreement to early January highs around $55.
Pundits confidently predicted oil will touch levels near $70 by the first half of 2018. However, signs of trouble for the bulls are already evident.
Related posts:
All the News That's Fit for Profit
BACK TO TOP
DISCLAIMER: Capitalist Times, LLC is a publisher of financial news and opinions and NOT a securities broker/dealer or an investment advisor. You are responsible for your own investment decisions. All information contained in our newsletters or on our website(s) should be independently verified with the companies mentioned, and readers should always conduct their own research and due diligence and consider obtaining professional advice before making any investment decision. As a condition to accessing Capitalist Times materials and websites, you agree to our Terms and Conditions of Use, available here including without limitation all disclaimers of warranties and limitations on liability contained therein. Owners, employees and writers may hold positions in the securities that are discussed in our newsletters or on our website.
© Copyright 2020 Capitalist Times, LLC. All rights reserved.