Thursday, November 27, 2014

OPEC Meeting ( November 27 , 2014 ) - Will OPEC cut oil production in the face of US Shale Production rivaling the Saudis ?

Zero Hedge....

Tyler Durden's picture

Oil Prices Collapse After OPEC Keeps Oil Production Unchanged

But, but, but... all the clever talking heads said they wil have to cut...
WTI ($70 handle) and Brent Crude (under $75 for first time sicne Sept 2010) are collapsing... as will US Shale oil company stocks and bonds (and thus all of high yield credit) tomorrow.

Tyler Durden's picture

19 US Shale Areas That Are Suddenly Endangered, "The Shale Revolution Doesn't Work At $80"

“Everybody is trying to put a very happy spin on their ability to weather $80 oil, but a lot of that is just smoke... The shale revolution doesn’t work at $80, period.

Tyler Durden's picture

For The World's Largest Rig Operator, The "Recovery" Is Now Worse Than The Post-Lehman Crash

The last time the world's largest oil and gas drill operator, Seadrill , halted its dividend payment was in 2009, shortly after Lehman had filed and the world was engulfed in a massive depression. Retrospectively, this made sense: the company was struggling not only with depressionary oil prices, but with a legacy epic debt load as can be seen on the chart below. So the fact that the stock of Seadrill collapsed by 20% today following a shocking overnight announcement that it had once again halted its dividend despite what is a far lower debt load than last time, indicates that when it comes to energy companies, the current global economic "recovery" - if one believes the rigged US stock market - is actually worse than the Lehman collapse.

Tyler Durden's picture

US "Secret" Deal With Saudis Backfires After Oil Minister Says US Should Cut First

Who could have seen this coming? With oil prices holding at 4-year lows, heavily pressuring around half of US shale production economics, the "secret" US deal (see here and here) with Saudi Arabia to crush Russia via oil over-supply in a slumping demand world appears to be backfiring rapidly for John Kerry and his strategery team. Capable of withstanding considerably lower prices for longer, Saudi Arabia's oil minister Ali al-Naimi proclaimed "no one should cut production and the market will stabilize itself," adding rather ominously (for the US economy and HY default rates), "Why should Saudi Arabia cut? The U.S. is a big producer too now. Should they cut?" With prices expected to drop to $60 on no cut, maybe the "unequivocally good" news for the US economy from lower oil prices should berethunk.

Chart of the day.... and key comment from 11/26 !


Which led the Saudi Minister to comment...
"Why should Saudi Arabia cut? The U.S. is a big producer too now. Should they cut?"

*  *  *


Bad day for Russia: EU agrees new sanctions and OPEC agrees to keep current production target, oil price falling

OPEC Policy Ensures U.S. Shale Crash, Russian Oil Tycoon Says: OPEC policy on crude production will probably e...

High risk prices could slide to $60/barrel if doesn't cut production - November oil production

Arabia, signal no push for oil cut

Will be surprised if members agree to cut production at meeting if it means handing market share to shale producers.

OPEC Meet - Iraq Oil Minister says, Crude has $65-$70/BBL price floor. U.S. Shale has added to surplus in oil market.

OPEC Meet - Iran Oil Minister says, OPEC meeting won't be very difficult.

10:16:16 DJFN *DJ Venezuela Foreign Minister: Would Agree With Decision to Cut 5% of OPEC Production

OPEC: Reuters - foreign minister says oil market over-supplied by 2 million bpd


Is $60 the new $100? says numerous mentions of $60 per barrel out of Vienna suggests it cd be the new floor.

falls $2 to 4-year low as production cut seen unlikely. Price wars ahead?

Oil Price Plunge Suggests An OPEC Cut Is Unlikely - Oil prices fell on Thursday ahead of a major meeting of OPEC m...

Oil extends its drop into Opec meeting. Brent down >2% to a fresh 4yr low of 75.48, lowest level since Sep2010.

Can Vladimir Putin save Saudi Arabia's sheikhs from the glut of oil?

As we wait for OPEC, a reminder how much and how quickly oil has fallen. -34% since June:

: Poorer members of OPEC want to cut output. Richer ones prefer to keep pumping