Lets start this conversation with your input, list your one word descriptors for each of the following entities in the comments section in this order: OPEC, ISIS, FIFA. Here are mine: DELUSIONAL, COWARDLY, CORRUPT.
Those are the corresponding adjectives we choose, I can’t wait to see how you would describe them so please take the time to list your three adjectives as soon as possible.
So OPEC met in Austria recently and the classical music to celebrate their movement towards rebounding our great oil and gas industry was at an all time low level, as a matter of fact Beethoven stayed home. Indonesia must be thrilled to have their membership resumed; we would just be so ecstatic. So what did they say and what is their “action”. The below is taken directly from their press release off their site following their meeting:
“Having reviewed the oil market outlook for 2015, and the projections for 2016, the Conference observed that global economic growth is currently at 3.1% in 2015 and is forecast to expand by 3.4% next year. In terms of supply and demand, it was noted that non-OPEC supply is expected to contract in 2016, while global demand is anticipated to expand again by 1.3 mb/d. In view of the aforementioned, and emphasizing its commitment to ensuring a long-term stable and balanced oil market for both producers and consumers, the Conference agreed that Member Countries should continue to closely monitor developments in the coming months.”
Pretty much mind blowing, so much so that they will sit on their hands until June of 16 to re-assess the situation at their next conference. Jeff Reed on oilpro.com wrote a great article on their in-action and how the poorer member countries are becoming inpatient, view it here.
Below is a chart pulled from the Monthly Oil Market Report and found through this site opec.org. Instead of commenting on this forecasting the goal of including this chart will be to re-visit it in Q2 2016 and see how accurate NYMEX and ICE was in projecting the future pricing.
You have to wonder how quick after this meeting will these forward curves be re-projected and at what slope.
Now, onto the two other four letter acronyms:
ISIS – A fitting mascot, seen here: ISIS Devils - Australian Rugby Team
Do understand my one word description of the entity at the beginning of this blog is not in regards to this rugby team, the first entity doesn’t deserve my time in commenting on their state of affairs.
FIFA – Figured this may get some of you die-hard futbol (‘clears throat’, soccer.....) fans to read this post if anything. Is that Sepp Blatter guy in jail or is a free man? I just searched for where the next World Cup is and out popped Russia, Russia – really? Do we think the Organization of the Petroleum Exporting Countries will have them so far deep in the doldrums by then that they will allow OPEC countries to participate? Maybe by then the ISIS devils will be in the running for the Rugby World Cup in 2019.
So, next week will be telling on how the card holders react, but if anything its more of the same. You have to wonder when a Venezuela, Ecuador, or Algeria will call an emergency meeting between now and June to address the matter at hand, because today there the only matter that was addressed was the invisible dark matter.
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