Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (82300)	4/14/2020 1:44:34 PM
From: Goose94	Read Replies (1) \| Respond to of 202922

Crude Oil: WTI has given up all the gains it had made since the start of the month as markets come to view the OPEC+ deal as inadequate. OPEC+ agreed to cut nearly 10 mb/d, and depending on who is doing the accounting, additional cuts from other non-OPEC countries take the reductions up close to 20 mb/d. In reality, however, the market-based cuts from the likes of the U.S. will occur anyways and won’t be switched off overnight. Oil showed little life after the historic deal was announced, highlighting the magnitude of the massive drop in global demand. Analysts say OPEC+ deal comes up short. Goldman Sachs said it was “ too little and too late” for the oil market. JBC Energy said it was “just a plaster on an open wound.” The 9.7-mb/d OPEC+ cut is likely not going to be enough to halt the build in oil inventories. Goldman estimates that even with full compliance of the OPEC+ cuts, another 4.1 mb/d of shut-ins are likely by May. OPEC+ agreed to a two-year deal in an attempt to inspire confidence about market stability. However, analysts also questioned the solidity of that commitment. “The current deal has been forged under duress and is much more likely to fall apart over time,” Bjarne Schieldrop, chief commodities analyst at SEB, said in a statement. “Saudi Arabia’s economic need for a production volume of 12-13m bl/day in a $50/bl world, and Russia’s strong distaste for production cuts as a means for achieving higher prices, are fundamentals which the current deal cannot circumvent.” Oilprice.com