What is wrong with [almost] everyone?
OPEC -- cut or not to cut? Why is this even in question? Here's the facts:
1) since OPEC's been in play in the mid-70's, there have been 17 "oversupply" situations that have run crude prices down. All 17 times, OPEC cut, somtimes significantly.
2) the original meeting was scheduled for Nov 21, but Venezuala needed more time to fine tune their "incentive", hence, the meeting was moved back to the 27th. Do you think that a "status quo" decision by the Saudi's would have required an extension to the meeting date?
3) yesterday, the Saudi Oil Minister, arriving in Vienna was asked, "Are you nervous about the upcoming meeting?", to which he replied, "nervous? about what, there have been oversupply situations in the past, and there will be more in the future".
4) at least half of the OPEC members are begging for a cut to run up prices; Russia is begging for a cut and have indicated their willingness to contribute 300K bbl/day to the program.
5) Finally the conspiracy theory that the US and Saudi have conspired to run down oil prices to punish Russia: are you kidding? Throw the US shale industry, every OPEC nation's margin of profiability (and more), not to mention Saudi's imperial attitude of total world oil domination . . . all under the bus . . . just to "punish" Putin.
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By this weekend, there will be over 1m bbl/day cuts by OPEC, plus a couple hundred thousand thrown in by Russia . . . oil will be well over $80/bbl, and by the end of next week, probably closer to $90/bbl.
Anyone not seeing this as a clear-cut, no questions asked, buying opp on oil stocks . . . . well, are just reading too much "doom and gloom" editorializing.
For what it is worth that is my opinion.
