Crude

Iran Furious After Obama Said To Extend Iran Sanctions; Oil Jumps To 2016 Highs

Until today, the White House had not pushed for an extension of the Iran sanctions act, but that changed moments ago when Reuters reported that Obama is expected to extend the Iran sactions, in effect not only jeopardizing his own Nuclear treaty, but also threatening to cut as much as 1 million barrels in Iranian oil output should Trump reimpose the full Iranian sanctions next year. In response oil jumped to new 2016 highs.

US Oil Rig Count Rises To 10-Month Highs

From the 316 rig trough in May, American oil drillers have added 161 to 477 - the highest since January 2016. The rising rig count continues to track lagged oil prices higher and US crude production is following that trend to its highest level since June.

OPEC Deal Sends Crude Curve Into Backwardation For First Time Since 2014

Following OPEC's agreement to cut prodiction for the first time in 8 years, front-end prices have spiked (above $50) but perhaps more notable is the unusual 'stability' in the crude curve around $54 from July 2017 to Nov 2019. For the first time since October 2014, the belly of the crude curve is in backwardation (far-months cheaper than near-months).

Frontrunning: December 1

  • Oil hits six-week high after OPEC deal, sterling jumps (Reuters), Oil Holds Gains After OPEC Deal (WSJ), Hangover Awaits as OPEC Celebrates (BBG)
  • Opec agreement: the winners and the losers (FT)
  • Russia’s Pledge to OPEC Will Mean ‘Herding Cats’ to Deliver Cuts (BBG)
  • Mnuchin Made Millions From Financial Crisis (WSJ); Trump reverses stance by turning to Goldman alumni for key roles (FT)
  • Treasury Pick Says ‘No Absolute Tax Cut’ for Wealthy (WSJ)

$1 Trillion Money Manager Downplays The OPEC Deal

"...the oil price surge today is probably not sustainable... [OPEC] is fighting against history... The cost of producing crude, largely due to fracking technology, has dramatically changed the marginal economics of oil..."

WTI Crude Surges Over 10% Near $50

In the biggest surge since the August 2015 melt-up/options debacle, WTI Crude has spiked over 10% today as man and machine urge the price up towards $50...

Here Are The Details From The OPEC Production Cut Deal

The much anticipated headline is out and, as Bloomberg reports, OPEC has reached a deal agreeing to cut oil production by 1.2 million barrels per day to 32.5mmbpd from the current level of 33.6mmbpd. This would be OPEC's first production cut since 2008.