News from Vienna
According to 2 sources OPEC+ ministerial panel recommends output cuts until June. There is no clarity with regard to if there will be deeper cuts to production or will current production cuts remain in place.
Archives of “December 5, 2019” day
rssNovak: OPEC+ accepted recommendation to exclude condensate from Russia’s oil quota
Russia’s oil minister Novak speaking
Russia’s oil minister Novak says that OPEC+ accepted recommendations to exclude condensate.
Condensateis a mixture of light liquid hydrocarbon similar to a very light crude oil.
So by excluding it in Russia’s quota, it is a net increase in production.
The headlines from the meetings are a bit confusing overall. The latest indications were that the group agreed to adjust official production targets. However it remains to be seen if that will result in real reductions.
A headline that just came out now is suggesting that they have not discussed a 500,000 B/D cut and production.
As a result, it is best to be cautious as the meetings play out.
European shares end the session mixed but near the lows for the day
German Dax -0.65%. UK FTSE -0.7%
The major European shares are ending the session with mixed results but near lows for the day. The provisional closes are showing:
- German DAX, -0.65%
- France’s CAC, unchanged
- UK’s FTSE, -0.70%
- Spain’s Ibex, -0.16%
- Italy’s FTSE MIB, -0.28%
- Portugal’s PSI 20, +0.1%
Meanwhile in the US, the major indices are also lower but they are off the lows for the day. Below are the changes in ranges on a percentage basis for the major European and US stock indices.
4 Stages of Trader Development:
Unconscious incompetence (Most don’t make it past here) Conscious incompetence (I’ll never succeed) Conscious Competence (I can do it ,there’s hope) Unconscious incompetence (Success at last, but it took far longer than expected)
Eurozone Q3 final GDP +0.2% vs +0.2% q/q second reading
Latest data released by Eurostat – 5 December 2019
- Q3 final GDP +1.2% vs +1.2% y/y second reading
The secondary reading can be found here. No changes to the previous estimate, as such this just reaffirms more sluggish growth seen in the euro area during the third quarter.
Household consumption was a minor bonus but growth is largely marred down by trade. EUR/USD stays a little more bid on the session at 1.1091 but is still unable to firmly break above the 1.1000 handle for now.
Saudi oil minister: I feel good about the OPEC meeting
Comments by Saudi Arabia oil minister, King Salman bin Abdulaziz
There have been whispers that he is pushing really hard to try and get other OPEC members on board with the idea of deeper output cuts. That said, it remains to be seen if Russia – a key stumbling block in the plans – will agree to such a proposal.
I’m not sure if we can read anything into the headline comment but there haven’t been much leaks about what to expect in the first few hours.
Written in a 1999 magazine, “all that connectivity is going to destroy what’s left of everyone’s privacy.”
WTI crude oil futures settle at $58.43
Plus $2.33 or 4.1%
The price of WTI crude oil futures are settling at $58.43. That is a gain of $2.33 or 4.1%. The move higher today was helped by a bigger than expected drawdown of inventories of -4856K versus -1500K estimate. News that Saudi Arabia is is threatening to keep production higher to punish producers who don’t keep to their quotas had little impact.
Looking at the 60 minute chart above, the contract spiked above its 100 hour and 200 hour moving averages (blue and green lines) and extended up to the recent highs over the last 9 or so trading days between $58.67 and $58.74. The high price today reached $58.66. The low for the day was down at $56.28.
A move above this ceiling would be more bullish for the contract. Staying below, and we could see a rotation back down toward the 200 hour moving average of $57.46.
US stocks end higher but can’t hold onto new highs made in the last hour of trading
Helped by hope of US/China. Weaker ADP employment and ISM nonmanufacturing limited the run higher
The US stocks are ending the session higher on the day but a late day rally that made new day highs could not be sustained.
Catalyst to the upside was hope for US/China trade deal. Hurting the sentiment (or limiting the upside) was weaker ADP employment change and weaker than expected ISM nonmanufacturing index.
The final numbers are showing:
- S&P index, +19.56 points or 0.63% at 3112.76. The high reached 3119.38.
- NASDAQ index, +46.029 points or 0.54% at 8566.67. The high reached 8584.88.
- Dow industrial average rose 146.97 points or 0.53% at 27649.78. The high price extended to 27727.45
Thought For A Day
