3 Oct

Decoding the Major Oil Producers’ Meeting in Algeria

WRITTEN BY Gordon Kristopher

Major oil producers’ meeting  

OPEC (Organization of the Petroleum Exporting Countries) producers’ meeting was held from September 26–28, 2016. Crude oil prices rose 12% in August 2016, partially due to speculation around the outcome of this meeting.

On September 28, 2016, OPEC producers reportedly reached an agreement to cap production in the November OPEC meeting. US crude oil rose 8% in September 2016—partly due to the announcement of a reduction in crude oil production between 700,000 barrels per day and 1 million barrels per day by OPEC members. The details of the quotas for OPEC members will be furnished in the November meeting. For more on OPEC production in September 2016 and crude oil prices, read Part 3 and Part 1 in this series.

Decoding the Major Oil Producers’ Meeting in Algeria

Non-OPEC producers

Russia is the world’s largest crude oil producer and exporter. It isn’t a member of OPEC. It showed interest in capping its crude oil production along with OPEC. Read Will Russia’s Crude Oil Production Reach Historic Levels? and Will Iran’s Crude Oil Production Pressure Crude Oil Prices? to learn more about Russia and Iran’s crude oil production.

The US is also one of the largest crude oil producers and importers. It’s a non-OPEC member. Higher crude oil prices will support US drillers and producers to increase crude oil production. For more on US crude oil production, read Slowing US Crude Oil Production Could Boost Crude Oil Prices.

Also, read How OPEC Crude Export Revenues Could Impact Oil Producer MeetingSaudi Arabia, Russia, and the US Impact the Crude Oil Market, and What Will Happen if the Oil Producer Meeting Succeeds? to learn more.

Impact on oil stocks and ETFs  

Oil producers’ meeting increased the volatility in the crude oil market. The volatility in crude oil prices impacts oil and gas producers’ profitability such as QEP Resources (QEP), Synergy Resources (SYRG), Range Resources (RRC), and Goodrich Petroleum (GDP).

Volatility also impacts funds such as the Vanguard Energy ETF (VDE), the SPDR S&P Oil & Gas Exploration & Production ETF (XOP), the ProShares UltraShort Bloomberg Crude Oil ETF (SCO), the Fidelity MSCI Energy (FENY), and the Guggenheim S&P 500 Equal Weight Energy ETF (RYE).

In the next part of the series, we’ll look at Cushing crude oil inventories.

Latest articles

Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.

The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.

Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.

Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.

Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.

172.31.71.127