Gold Market Wire
News, analysis and commentary for gold traders and investors
Crudie Oil Market
OPEC+ Set To Increase Output by 650k/bpd ... Prices Rise
Well, that wasn't supposed to happen...
The 'look' today for the OPEC+ meeting was for an increase of around 450kbd, and then a touch more - which is exactly what we are going to get. Prices fell yesterday in "anticipation" (also called the 'great trading fade'), and now, that the increase has been confirmed- we have rallied. Fade the news....rally right back on its release. Nothing changes - but so many fall for it, time and time again.
The 'airwaves' are raging with the injustice of it all! How, in the name of XXXX, can oil rally when OPEC is increasing production? It's very simple. We are in a major bull market and such piddling amounts of production mean flat out zero. The Saudi's would have to talk about a never ending 2 million barrel a day increase (which they do NOT have) to even make a dent in this market.
Did 'people' not understand that sanctioning the largest energy producer in the world would have consequences?
And just to add insult to injury, the fact that 'other' Russian customers are gettign huge discounts is just adding insult to injury. One price for the sanction-crazed western world - another price for rest (i.e-80%) of the planet.
The madness just goes on and on. And the price of oil just keeps going higher.