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Oil Pumps-And-Dumps On Nigeria Comments On Emergency OPEC Meeting; OPEC Denies
UPDATE: *OPEC SAID TO HAVE NO PLANS FOR EMERGENCY MEETING
Crude oil oprices have spiked higher after The FT reports:
- *OPEC MEMBERS MAY HOLD EMERGENCY MEETING ON CRUDE SLIDE: FT
- *FT CITES NIGERIA OIL MINISTER ON POSSIBLE OPEC MEETING
This would entirely contradict Saudi Arabia's previous statements and, we suspect, means this was more a hope than a statement as the Nigerian Naira collapses...
The market's reaction suggest doubt...
Members of Opec have discussed holding an emergency meeting if crude continues to slide, according to Nigeria’s oil minister, in a sign of their growing alarm over the impact of a lower oil price on their economies.
The comments by Diezani Alison-Madueke come three months after the cartel’s decision to hold production at 30m barrels a day, even as the oil price has plunged since mid-June.
...
“Almost all Opec countries, except perhaps the Arab bloc, are very uncomfortable,” said Ms Alison-Madueke, who as president of Opec is responsible for liaising with member countries and the producer group’s secretary-general in the event of an emergency meeting.
If the price “slips any further it is highly likely that I will have to call an extraordinary meeting of Opec in the next six weeks or so”, she said in an interview with the Financial Times. “We’re already talking with member countries.”
...
Although the price has since recovered to around $60, Ms Alison-Madueke said she was not convinced a floor had been reached.
“It is hoped that [the price] will stabilise at no less than $60, but we cannot be sure,” she said.
* * *
This, unfortunately has all the indications of a "Nigerian scam"-esque move by a desperate nation as the Naira broke above 205 earlier today:
Nigeria's oil minister says OPEC needs better relationships with other large producers, including the US and Russia, "to remain strongly relevant"
* * *
It seems the market is not as excited about this 'spoof' as various talking heads are...
Of course the short squeeze that it created has not roundtripped...
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Busy guy, he just sent me an email about some unclaimed funds.
Nigeria needs to subsidize solar
Reminds me of an ICann twit
Yes, OPEC countries can get together and make promises about production cutbacks which every country will readily break.
OPEC has the problem that most of them are going to hell but the Saudi bloc is playing for their own ends and don't give a shit about any other country/group. I get the feeling that OPEC will fall apart soon and every man for himself will be the new rule.
Does anyone else agree there is a base being built at current levels, which hasn't been breached since the end of January. Irrespective of the headlines, to me at least, I see a low risk buying opportunity here?
Jeeesh... nobody anywhere can agree on anything anymore.
Does anyone else disagree with that?
You're early.
If they put a solar panel on every hut, they might actually have a functioning economy. The money Obama blew on solar would have covered all of Africa with panels and it would actually have been an improvement of sorts.
Ms Alison-Madueke: OPEC is being broken up. You might want to wake up as well.
US Sheeple already subsidize Nigerian (and a lot of other relative/actual po' folks) solar.
USAID and ExIm and others steer US taxpayer dollars and relatively attractive financing packages (aka subsidies) for UN green energy initiatives being steered to US companies (or their offshored subsidiaries).
The Chinese, however, are winning the scam by a country mile (by monetizing all that USD debt that certain people are afraid of them "dumping"...).
Except this happened righ after the negative rig count article was posted. LOLOLOLOL!!!!!!!!!!! ZH is at risk of becoming a contrary indicator on oil here. How Stolperesque...................
Seems like some people were way too early hopping on the oil to $100 by summer bandwagon
Oil to $75 would be just fine for traders and producers alike.
They want it but too bad it won't happen unless there's a major war in the ME. The economy doesn't support it
And watch gas jump $0.30 per gallon based on the temporary jump even though prices went back to where they originally were.
You mean "the comment section at ZH needs to be stolpered."
This place is starting to make too much sense and is becoming "dangerous."
Word on the Street is "they have a leader too."
More a teacher really...
Opec will let Nigeria become the sacrificial lamb...hard to believe OPEC would have a harmonious agreement to curtail production...they haven't been able to do that easily ever.
Nigeria, Please.
@honky shogun.. LMAO
lolololol
Nigeria needs the money to fight Boko Haram and Ebola .... a war on two fronts !
They will end up like a bigger version of Syria, mark my words.
Bwahahahahaha!! What a crock! Just as I posted around 8:00 am this morning - Oil will bounce on some fabricated story, gold and silver will be beaten down further - Stocks will rally, WHY? Because its the Fed narrative! Carve it out baby!
...While ZH tries to pin it on some fundamental nonsense. Geez!
Thank God, OPEC called a meeting. My heroes. For a few trading days there it didn't look like there would be any real news.
Maybe they'll go so far as to issue a joint and unified global statement about doing whatever it takes as a world community working together. Or have a plan... or promise to have a plan... or even assure us that it's All Fixed now. Or - OMG! - maybe, MAYBE even form a special task force!
And if they do agree to cut production you can be assured that every single member will stick rigidly to the new quotas.
I think there is a war on task forces.
It's too late for OPEC to curtail production now.
If they did, they would be just GIVING more market share to the non-OPEC countries.
The Arabs are fighting with Russia over supplying Chindia with oil. Cutting production now would ruin the economic relationship. Chindia wants stable supplies of oil, not countries that cut production each time oil prices fall.
Wasn't Chindia paying $80+/bbl the last three years with stable supplies? Not sure what Chindia want is what really matters here.
Now they're paying $50. The money flows one way while the oil flows the other. China didn't cut off the supply of money when it was $80. Why should they expect the Arabs to cut off the supply of oil when it's $50? What the Arabs want doesn't matter when Russia can send the oil for cheaper via pipelines and they won't cut off supplies when prices go down.
Russia has limited ability to supply China and India with oil, thei pipelines run the wrong way for the most part. Russia also has limited ability to increase production at $50/bbl oil.
Two new Russian pipelines being built to China and another in planning to go to India. There's also one new pipeline being built from Kazakhstan to China. It's not a good time for the Arabs to cut supplies to China in the face of new competition. China will look to more reliable partners like Russia, Australia, and Indonesia as their primary suppliers.
artificially boosting prices (OPEC cuts) will only hurt the demand side even more. they've entered a vicious cycle here, where oil really can only go down. at least until ww3 begins.
The Arabs know that cutting production now will only further entrench non-OPEC drilling. Russia, USA, and Canada aren't slowing production at this point. What the oil bulls don't understand is that this is a price war started by the Arabs to bankrupt non-Arab countries. The Saudis stated it plain and clear at the end of summer when they started selling to Asia at below-market prices. They want to bankrupt shale and other marginal producers. They might not succeed, but they will cause more damage to the oil industry before it's over.
"Shut down all the trash compactors on the detention level"!
One thing's for sure: we're all going to be a lot thinner.
Took me a minute, but I got it. That's funny.
What exactly would they do? It's not like countries like Venezuela could afford to cut their output. If Venezuela and other such countries cut their output, they'll speed themselves into BK at best and a coup at worst.
Arrest the Mayor! Charge him with treason!
This is a thoughtless comment. Unless someone else can raise output, they will get a price incres fairly quickly as a result. For every barrel not produced, a barrel will be pulled from storage. Saudi Arabia and the gulf states can't raise production, they are running flat out and hurting themselves to boot.
Where are you arriving that the price of oil is is such that a country like Venezuela will net more than 1 barrel of oil in returns for each barrel that they reduce? Also if OPEC is cutting production that would expressly invite non-OPEC members to profit off whatever price increase there is from the OPEC cut, so yeah, the price of oil may well go up but you're not demonstrating how an OPEC cut translates into a net positive for Venezuela's budget.
Every barrel they don't sell now is one they have to sell later at a higher price. They simply allow the other market players to empty their reserves at these low prices. As I also pointed out, unless the other countries can take up the slack, the replacement barrels will have to come from storage surplus and that is good for the price. The budget issue can be resolved easily by cutting social spending, it's the same thing Saudi Arabia will have to do along with the other gulf states. The difference in the societies is that the ME muslims are violent while the South Americans are laid back. Look at Cuba as an example of how the Latin culture can deal with a lack of money and resources.
Six weeks or so.....ROFLMAO....Nothing like telegraphing what you want the market to do, based on what you MIGHT do six weeks or so down the road.
Algos chasing headlines, nothing to see here, SSDD.
"Works until it doesnt."
I say again...that price is going to a dollar.
Fine..."fade the rally then."
These "spikes" only point to further...and perhaps even far deeper lows.
It is a "tribute" that such price action can even happen at all. That says to me Governments themselves are providing ENORMOUS liquidity "to bully Mr Price around."
Trillions later and we're talking a drop in the bucket.
This very low price for oil does not mean it is worthless. Indeed...this very low price says to me it is more valuable than ever. We just not only don't have policies that create final demand ("jobless prosperity") but we are DELUSIONAL about the actual value of "things" (price) rather than...well, let's take the actual value of cash money itself.
The fed set the example. Now we get commodity price jawboning and stock buybacks.
Despite being the incompetent , captured , laughing-stock that it is, the Nigerian Elite have an arrogance matched only by the Western Cabal.
There will be a Boko Haram in every city in this useless country when the oil cash dries up.
That is 100% true. I was blown away when I met a few of them. They were so arrogant that you'd imagine they had personally founded a company like Apple whereas in reality all they are is the biggest/most successful thiefs who never did a productive days work in their lives.
The Tribe is rich. Nigerians are Nigeria Rich.
African bling bitchez.
Again..."works until it doesn't."
Any phone calls lately from Nigeria telling you that you're a big lottery winner?Please go to the bank and transfer the security deposit in order to claim your huge prize...
I'm so sorry for the Nigerians. Hard-working, diligent, honest, reliable.....
"Continued" slide ? It's been hovering around this price for over a month...
http://www.forexfactory.com/news.php?do=news&id=527897
Opec now says "No plans"
Greek deals/no deals, oil meeting/no meeting. It's almost as if someone has worked out the only way to beat the algos is to feed them false headlines
uk gets 8% of it's oil from nigeria
boko haram is being quite naughty
supply disruption in nigeria (in addition to libya) is not too far away (or syria or iran i guess)
whilst these rallies might not be sticking right now those short oil might do well to remember they are only one misplaced missile away from margin calls
you are shorting a hard commodity that has a floor not too far away (could be $40 could be $20 no idea)
and a ceiling that could be $100 higher in short order under the right / wrong circumstances
Nice fucking chart.
BAN ALGOS!!!!!
This is really getting fucking old. How can there ever be price stability or discovery when one unsubstantiated rumor can cause a $1 spike in seconds. The real story is who wants to keep oil pinned at near $50.
Nigeria never said it will be meeting now. Nigeria said:
If the price “slips any further it is highly likely that I will have to call an extraordinary meeting of Opec in the next six weeks or so”, she said in an interview with the Financial Times. “We’re already talking with member countries.”
----------
So, what is problem?
Yes, Nigeria will try to organize emergency Opec meeting if oil continue to slide in next six weeks. There is no any scam.
This is also not the first time she says this but this time she says they have been talking to other members about it and I believe Brent was trading below $60 today.
True, $60 per barrel is lowest price for Nigeria and probably bunch of other Opec members and they will try to organize emergency meeting of oil slide further down. She said that:
“It is hoped that [the price] will stabilise at no less than $60, but we cannot be sure,” she said.
If the price were not being supported in some way right now, that failed breakout attempt would have signaled another dump coming immediately.
This is a cold for Nigeria .... but, it's pneumonia .... for the Bush Meat trappers !
VICE did an interesting piece on Nigerian oil. Dont think they have an OSHA over there.
It follows .... that if you don't have toilets .... you don't need .... toilet seat crack inspectors ?
My sources are suggesting oil has already bottomed,
and the next resistance level UP is low $60s followed
by a resistance level at $75ish after that.
Time frame is "probably" ( no bets here ) Q2&3
this year.
Of course, if you NEED $100/bbl oil that's NO consolation
to you...