OPEC and Russia will extend cuts. OPEC will accommadate Russia sighting their pipeline outage, allow Russia to chose which months to cut back. Ultimately Russia never cuts back . . . . Market will trade on the "good news" (false news)

[Falcon + 222]

When do the cutbacks end.  They have not worked.

Russia understands this .  Russia would be happy with $60 oil.

Worldwide inventory up over 140 mm bbls this year. NOT DOWN.

Trump's Venezuela and IRAN sanctions have taken 2.2 mm bbls off the market.

Brent will settle between $55 to $60 in next 1 1/2 to 2 years.

What happens when/if Maduro is forced out of Venezuela ?

What happens to countries that have economy based on oil St higher price ? 

I have to laugh when I hear oil analyst state "Oil is going to $80".  Based on what ?   ARAMCO's Khalid al-Falih said so.  Really ?  Could go to $80 . . . logic dictates sub $60 Brent. 

Lots of Volatility ahead  . . . . bias to the downside.  

 

Edited June 10, 2019 by Falcon