26 May 2015
OPEC stern on maintaining production unchanged – Malcolm Graham-Wood
FXStreet (Barcelona) - Independent Analyst, Malcolm Graham-Wood shares the key developments in the oil market – Oil rig count, Positioning in WTI, OPEC meeting and the rising global crude demand.
Key Quotes
“Overall rigs were down 3 last week with a net fall of only 1 in oil with new rigs actually appearing in one or two places, I get the firm impression that 6o bucks for WTI is reasonably comfortable for a lot of domestic producers.”
“As to those speculative positions the last two weeks have seen a retreat from the highs with last week showing a fall of 7.6% in WTI length and 13.4% in Brent.”
“Added to that were the comments made at the weekend by the Iranian Oil Minister Bijan Zangareh who stated that at the upcoming Opec meeting the cartel would ‘maintain production’. Whilst it is likely to maintain the status quo, there are still some stories doing the rounds that an across the board deal between Opec and non-Opec producers is being put together but dont hold your breath.”
“The only other possible reason for getting really optimistic at the moment are the reasonably positive signs of a global pick-up in the demand for products which has fed through to demand for crude thus offsetting any possible weakness in the market.”
Key Quotes
“Overall rigs were down 3 last week with a net fall of only 1 in oil with new rigs actually appearing in one or two places, I get the firm impression that 6o bucks for WTI is reasonably comfortable for a lot of domestic producers.”
“As to those speculative positions the last two weeks have seen a retreat from the highs with last week showing a fall of 7.6% in WTI length and 13.4% in Brent.”
“Added to that were the comments made at the weekend by the Iranian Oil Minister Bijan Zangareh who stated that at the upcoming Opec meeting the cartel would ‘maintain production’. Whilst it is likely to maintain the status quo, there are still some stories doing the rounds that an across the board deal between Opec and non-Opec producers is being put together but dont hold your breath.”
“The only other possible reason for getting really optimistic at the moment are the reasonably positive signs of a global pick-up in the demand for products which has fed through to demand for crude thus offsetting any possible weakness in the market.”