Monday, August 7, 2017

Higher Crude Oil prices are coming

"Until about three weeks ago, I had been manifestly bearish of crude oil for a long period of time. Finally I have to tell myself, maybe higher prices lie ahead. Any weakness [should be bought].

OPEC is clearly worried about getting crude oil above $50 a barrel. They need to keep it above $50 and keep it there.

The big problem that OPEC is, Nigeria, Libya and Angola have been left out of the OPEC quota system. And both Nigeria and Libya have been extraordinary in increasing production to the dismay of the Emirates and Saudis. In their next meeting, they have to find some way to find Nigeria and Libya to be put back in the quota system. Whether Nigeria and Libya will allow themselves to be put back in the quota is another question. Can they do it? I don't know."

via bloomberg