OPEC Meeting Concludes; WTI Surges -- Now Over $89 -- February 2, 2022

After OPEC meeting:

• Brent > $91
• WTI > $89
• steepest backwardation in over 30 years!!

Equinor: strikes water! But no oil. Ginny Prospect.

Norwegian oil and gas player Equinor has found no hydrocarbons in the stacked Ginny/Hermine exploration prospects in the Norwegian Sea. 

Link here. Agree completely.

Europe: in industrial recession. No energy. Industrialists in Germany must be going nuts. 

Europe: EU now says nuclear power and natural gas investments can be counted as "green" over coming years -- WSJ. Greta's head is exploding.

Europe: EU inflation unexpectedly accelerates to an annual record of 5.1%. Looks like previous record going back to 2008 was 4.1% or thereabouts.

MPC:

• results better than expectations;
• new $5 billion share repurchase authorization;
• this is on top of ongoing $10 billion program which is 55% complete;
• shares: up 3% yesterday; flat in pre-market today;

US oil production: up to 11.6 million bopd

• output constrained by labor shortages; truck / trucker shortage
• OPEC meeting today; won't have press conference. Why? Don't want to be asked questions about Ukraine; Putin's right hand energy man at the conference.
  

OPEC meeting: apparently concluded in a record-low sixteen minutes. Say what? No headlines; nothing new. Wow, wow, wow: after conclusion of OPEC meeting, WTI surges; up 1.36% now trading solidly above $89. Pre-market trading after this announcement:

• XOM: down 17 cents, but this is after a 6.4% jump yesterday;
• CVX: up another 0.5% after a 2.6% jump yesterday;
• EOG: up 0.7% after a 1.52% jump yesterday;
• HES: flat
• comment: almost as if investors don't understand what this means for oil sector;

ISO NE: big story finally being reported on CNBC; never thought I would hear this on CNBC; Becky certainly avoided that topic after it was brought up: ISO NE burning oil. 

GM:

• plans to build a third EV pickup truck
• GM looking to build a more affordable pickup truck (remember: Tesla says no plans for a more affordable pickup truck

PayPal: this is going to ruin the day for many. Down another 22% at the open. Was selling for $300 one year ago (February, 2021); now at $137 (February, 2022). 

Jobs: companies unexpectedly cut 301,000 jobs in January as omicron slams labor market -- ADP

• first reported net job loss since December 2020
• pandemic-sensitive leisure and hospitality industry hardest hit;