Yesterday, oil prices rose to a 15-month high, driven by the surprising drop in the U.S. commercial crude inventory, to its lowest level since January. Oil backed off some today, but the provisional OPEC agreement to control output may actually stick. Russia and other non-OPEC oil-producing nations seem cooperative.
While proposed production cuts won’t amount to much, this big shift in attitudes shows producers’ willingness to collaborate on prices. OPEC will meet next in Vienna on November 30. We hope the cartel will act rationally and target stable oil prices. Read more about Ready to Deal 10-20-16
While the price of oil this week continued to hold the $50 per barrel market, already speculation rumbles that supply-side shocks could send the price back into the $40s. More specifically, disputes in recent days from Iraq and Venezuela have caused some drama as discrepancies between their respective September production data and independent data suggest they might have both recorded higher production simply to grab higher production caps when OPEC sets official numbers next month. Read more about OPEC Drama Continues to Distract 10-13-16
As the latest issue of Leeb's Real World Investing was published on Monday, we do not publish our regular Weekly Update today. Please check back next week for our latest thoughts and recommendations. Read more about No Weekly Update This Week 10-06-16
OPEC met informally this week at the International Energy Forum in Algiers. Despite the hesitancy on production cuts, especially from countries like Iran, OPEC has agreed to lower oil production for the first time in 8 years. Read more about Oil Prices Bound to Snap Back Up 09-29-2016
OPEC will hold an informal meeting in Algiers next week at the sidelines of the International Energy Forum conference and it could turn into a full-blown formal session, according to Algerian Energy Minister Noureddine Bouterfa. Read more about Long-term Demand for Oil Should Grow 09-22-2016