Monday, October 3, 2016

Mike Filloon Is Exactly Right -- October 3, 2016

Link over at Seeking Alpha. Summary:
  • OPEC thought it could destroy shale production in the United States, but several mistakes led it to the current understanding with other OPEC members
  • The Saudis know that this will buy more time for OPEC producers, by placing a floor in oil prices until we get closer to a supply/demand balance
  • The supply glut is not going away, and we should get use to lower for longer as there are many producers capable of economic returns below $60/bbl
  • The Saudis continue to control OPEC, but at this point little else
For more on the "OPEC freeze," click here

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