The 173rd OPEC Meeting and 3rd non-OPEC Ministerial Meeting concluded with an agreement to extend the production cuts all the way through 2018. Saudi minister Khalid Al-Falih also implied that production in 2018 by Nigeria and Libya would not increase, based on information from those countries. In 2017, large increases by the pair undermined cuts made by others.
The official OPEC press release included two caveats, though not unusual but were obviously a concession to Russia, that the deals could be modified, depending on market conditions:
"In view of the uncertainties associated mainly with supply and, to some extent, demand growth it is intended that in June 2018, the opportunity of further adjustment actions will be considered based on prevailing market conditions and the progress achieved towards re-balancing of the oil market at that time."
"To support the extension of the mandate of the Joint Ministerial Monitoring Committee (JMMC) composed of Algeria, Kuwait, Venezuela, Saudi Arabia and two participating non-OPEC countries of the Russian Federation and Oman, chaired by Saudi Arabia, co-chaired by the Russian Federation, and assisted by the Joint Technical Committee at the OPEC Secretariat, to closely review the status of and conformity with the Declaration of Cooperation and report to the OPEC – non OPEC Conference."
Initially, at the meeting a year ago, the oil ministers predicted that the glut would disappear within six months. Then at the May meeting, the Saudi minister predicted that the extension would "do the trick" of draining the glut "within six months."
Continue reading "OPEC Appeases Russia To Stick With Deals"
Hello traders everywhere. The stock market went on a wild roller-coaster ride Friday, falling sharply on a report by ABC News that Michael Flynn was directed by President Trump to talk to the Russians.
The DOW fell over 300 points before recovering to trade about 80 points lower on the day. In afternoon trading, the S&P 500 was down by 0.40% and the Nasdaq by 0.65% after rebounding from losses of more than 1% earlier in the day.
Gold rebounded after three straight days of losses to trade up about .50% on the day as traders jumped to the haven as stocks fell.
Bitcoin has also traded back above 10,500 today as the road to Wall Street was paved today with an announcement from the CME Group Inc. that it's futures contracts will debut Dec. 18. Cboe Global Markets Inc. didn't announce a start date as both got the green light Friday after going through a process called self-certification - a pledge to the U.S. Commodity Futures Trading Commission that the products don't run afoul of the law.
Key levels to watch next week: Continue reading "Stocks Rebound After Flynn Report"
Gold is under pressure after it couldn’t break above the previous major top and the gold stocks couldn’t escape the same fate. Last time I filtered the gold stocks by ROE and in this piece, I would like to make an update on their price performance for you.
To remind you, the top stock tickers are ABX (Barrick Gold), SBGL (Sibanye Gold), IAG (IAMGOLD), GSS (Golden Star) and HMY (Harmony Gold Mining).
Chart 1. Top Gold Stocks Vs. Gold: The Brightest Star Is The Golden Star
Chart courtesy of tradingview.com
Gold topped on the 8th of September at the $1357 level, and that’s where I have started the chart. Gold (black) lost more than 4% from that peak. Three of the five stocks lost more in price than gold did: HMY (green) fell for more than 13%, your favorite (see chart #3) ABX (red) dropped almost 21%, and the worst performer is IAG (purple) with -21% drop, which was the top gainer in the previous update. Continue reading "Gold Stocks Are Under Pressure Except For One"
A couple of months ago I wrote about the incredible arrogance and chutzpah of the now-former director of the Consumer Financial Protection Bureau, Richard Cordray.
“In a country loaded with way too many arrogant politicians and government officials who think they are above the law and normal standards of decency, Cordray has set the bar pretty low,” I wrote back then. “Few public officials have shown the level of contempt for legitimate questioning from Congress, the White House and the industries his agency oversees than Cordray has shown since he took over the CFPB, and it’s only gotten worse in the past few months as his tenure winds down.”
It turns out that I grossly underestimated just how devious and cynical he can be. Continue reading "Going Rogue"
Hello traders everywhere. FANG shares are tumbling today as investors started selling the top-performing stocks of the year dramatically only to move into financials. This move is due to robust economic data and comments from Fed officials on future rate hikes.
Stocks had started the day higher on speculation the Senate would pass cuts to corporate taxes, with banks pacing gains on bets that industry will benefit most. Yellen's comments added to optimism that growth is poised to accelerate. The dollar erased an early gain, while 10-year Treasury yields rose.
Meanwhile, crude oil is falling for the fourth straight day on news that OPEC and Russia look set to prolong oil supply cuts until the end of 2018 this week while signaling that they may review the deal when they meet again in June if the market overheats.
Key levels to watch next week: Continue reading "FANG Selloff Erases Early Market Gains"