OPEC JMMC Minister Meeting coming up in September 12th . . .

[SKEP + 229]

Expect the same rhetoric.  They may commit to another 1 mm bbl/day cut to counter news that 2 new Permian pipelines starting to come online

The contraian view would be OPEC increases production to put the final blow to the weak over leveraged shale producers thus putting  them out of business. This would temporarily increase prices.  This would start the needed consolidation which is healthy for the U.S. shale industry.

* First, OPEC Members don't comply now, not that that matters.  Saudis prob force the issue. Might move prices up a little.  

* Don't expect anything to happen with Iran this year.  That 2 million bbls exports not coming back anytime soon.

* Might be regime change in Venezuela before end of year.  Stay tuned.

* Summer seasonal draw will come to end soon. That along with new Permian pipelines could put pressure on price

* U.S. production record 12.5 mm bbls s day.  This should resume march upward, albeit at slower rate, as the Permian DUCs are now being completed as a result of new pipelines. 

* Majors, Midstream and Commodity Firms have anticipated the Permian Pipelines increasing exports in Q4 for a while. Suspect buyers have been lined up to absorb U.S. increase. 

Edited September 3, 2019 by SKEP

[Douglas Buckland + 6,308]

Even if OPEC+ did agree to another cut, and did comply, the dougheads in the US shale fiasco would simply pump like there is no tomorrow guarantying that any positive effects of such a cut will be immediately negated.  

[SKEP + 229]

On 8/31/2019 at 12:53 AM, Douglas Buckland said:

 

Edited September 4, 2019 by SKEP