Replies to post #72727 on Options Wonderland

[3xBuBu]

Oil prices turned negative at noon, giving back a more than 12% gain, as the Street awaited details on production cuts from OPEC and its allies

Market following the down-turn

https://www.cnbc.com/2020/04/09/oil-jumps-ahead-of-make-or-break-opec-meeting.html

Saudi Arabia and Russia were reportedly discussing cuts that could take a record 20 million barrels per day of global production offline, Reuters said, citing sources familiar with the matter, although others said the cuts would more likely be around 10 million barrels per day.

According to Reuters, OPEC+ would cut output by 12 million barrels per day, with an additional 5 million barrels per day cut by producers outside of the group. The deal would reportedly last for two years with the cuts implemented gradually, Reuters said.

Oil prices reversed course and turned negative as traders awaited confirmation of the cuts as well clarity on key details, including how the cuts would be divided among OPEC+, as well as the production numbers on which the cut would be based.



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[3xBuBu]

WTI dropped below $20



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[3xBuBu]

OPEC and Russia Agree to Extend Oil Production Cuts
The original deal would have allowed increases starting next month. The new pact reflects producers’ concerns that the oil market could fall apart again.

https://www.nytimes.com/2020/06/06/business/energy-environment/opec-russia-oil-coronavirus.html

[3xBuBu]

Chesapeake Energy Corp. CHK @11.85 on Friday, -7.27% said Sunday that it had filed for bankruptcy protection as an oil- and gas-price rout stoked by the coronavirus pandemic proved to be the final blow for a shale-drilling pioneer long hamstrung by debt. Its shares were halted at the open.