"It is getting complicated...every day there is a new issue coming up," one OPEC delegate said this morning as it is clearly becoming harder to keep the smoke and mirrors jawboning of a possible cut/freeze alive in the face of a reality that is very clearly enunciated by Russia's energy minister, "any output freeze could be offset by a quick recovery in US shale oil output." In other words, why bother with a freeze at all.. which is exactly what Iran and Iraq just said...
- IRAQ AND IRAN REFUSE TO FREEZE OUTPUT - SOURCES
- *IRAQ, IRAN SAY OPEC UNDERESTIMATES THEIR PRODUCTION: DJ
- *OPEC MTG SAID DEADLOCKED AS IRAQ, IRAN DISPUTE DATA: DJ
The reaction is clear, disappointment.
Pushing WTI to near one-month lows.
And now that the machines have run $50 stops twice in 2 days, we suspect there is little ammo left to keep the dream alive.