Archives of “December 2019” month

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Russia said to not be happy with proposed quota for OPEC+ cuts

  
  Analysis

Some whispers ahead of the press conference

The latest tweet by Amena Bakr, one of the more in-the-know journalists in covering oil and OPEC matters:

“Delegate tells @energyintel that Russian minister Novak is not happy with the proposed quota for the cut #OOTT”

Russia has always been the thorn in the side when trying to pursue the additional cuts but they got what they wanted with regards to the condensate exemption. Sure, they may voice out their dissatisfaction but I doubt they’d get in the way of the agreement.
The joint press conference is supposed to have started five minutes ago, but as expected, it is delayed for the time being. You can watch it live here.

Trump: Do not believe “anonymous sources” on trade, other subjects

  
  Analysis

Trump with a tweet to start the day

“Do not believe any article or story you read or see that uses “anonymous sources” having to do with trade or any other subject. Only accept information if it has an actual living name on it. The Fake News Media makes up many “sources say” stories. Do not believe them!”

Sadly, we live in a world where sensational journalism is a key part of society these days – no thanks to the fact that the industry is a cutthroat one and where stories are often “leaked” by what Trump labels as “anonymous sources”.
It’s one of the more negative side effects of the rise of social media, in the sense that information travels quickly so everyone wants to get on top of the news coverage.
But at the same time, it reflects badly on society as a whole that everyone will just about believe anything and everything they see or hear. We may not notice it too much but that is the fact of life, even in trading:
Buy sell

OPEC+ said to reach agreement to reduce output target by 500k bpd

  
Analysis, Crude
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OPEC+ ministers are said to have agreed to the deal

The closed session meeting is still taking place but as ever the case, the decision is already being leaked out. In any case, the 500k bpd additional cut here is what has been anticipated over the past two days.

But all this does is just bring the target level closer to actual production levels seen throughout the whole of this year. Oil stays slightly pressured with Brent near lows just above $63 and WTI likewise just above $58.

China said to start implementing tariff waivers for some purchases of US soybeans, pork

  
  Analysis

Xinhua reports on the matter

You can sort of look at this from two sides in my view. On the one hand, it looks like China is giving a little more goodwill in trade talks.

On the other, this looks like they are trying to find some alternative means to increase agricultural purchases without giving an actual figure commitment – something that the US wants in negotiations right now.

US Market : Major indices close little changed on the day

  
Analysis, US Market

Small gains in the major indices

The major indices are ending the day with small gains.  The final numbers are showing
  • S&P index rose 4.94 points or 0.16% at 3117.69. The high price came in at 3119.45. The low was at 3103.76
  • NASDAQ index rose 4.031 points or 0.05% at 8570.70. The high price reached 8588.88. The low was down at 8541.91
  • Dow industrial average rose 29.36 points or 0.11% at 27679.14 the high price reached 27745.2. The low extended to 27562.80
The Dow leaders are Apple and Nike.
  • Apple shares rose by 1.46%
  • Nike shares were up 2.26%

On the downside:

  • 3M was the biggest loser at -1.68%
  • DuPont fell by -1.2 at 3%
  • Boeing fell by -0.91%

Novak: OPEC+ accepted recommendation to exclude condensate from Russia’s oil quota

  
  Analysis

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.
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