Wednesday, April 6, 2016

OilPlosion Report

Another short-covering rally in oil today. Insert widely-believed specious reason here __________.

The much anticipated meeting between OPEC and Non-OPEC producers takes place on April 17th in Doha. OPEC members can't agree internally on production cuts, so they're going to get the entire world to agree on one instead.

"Russia’s crude oil production rose by 2.1% to 10.9 MMbpd (million barrels per day) in March 2016 compared to March 2015...Russia’s March levels are at their highest crude oil output level since the collapse of the Soviet Union...On February 16, Russia, Saudi Arabia, Venezuela, and Qatar decided to freeze crude oil production at January 2016 levels"

"it is clear that Iran, Iraq, and Russia have all increased crude oil production from their February 2016 levels. Only Saudi Arabian production fell in February 2016 from the previous month"

Russia freezes production like the PBOC freezes devaluation. One day frozen, next day not so much...