On Tuesday Iran wrote a letter to Saudi Arabia asking them to curtail their oil production by as much as 1 million barrels a day, which is much more than the Saudi's are willing to cut production according to Reuter's sources.
That news sent the price of oil down 3.91% while Brent fell 3.77% on Tuesday. This followed a meeting which sources say took place on Monday between Saudi Arabia, Iran, and Iraq, the Organization of the Petroleum Exporting Countries three largest producers. OPEC is set to meet Wednesday, November 30th to discuss plans on how and who will cut production in an attempt to increase the price of oil. The announcement that a production cut would come at the November meeting was announced weeks ago when OPEC meet briefly.
At the time some experts said a production cut would be hard to come by since none of the three big countries wanted to give up production, but despite doubt, the price of oil jumped to $50 a barrel on the idea that production would be reduced. Now that we are in the midst of the meeting and things don't look good for a production cut, oil is trading erratically and there is money to be made from the uncertainty.
While I certainly can't tell you which side of the trade you should be on, I can give you a few ideas of how to trade rising or falling oil prices moving forward. Continue reading "OPEC Tensions Sending Oil On A Ride; A Few ETF's To Play The Move"