Another small rally yesterday albeit slightly lost this morning on the back of a strong dollar. Traders tell me that the feel of the market stayed quite good yesterday and rallied again after the EIA stats which showed a build of 2.1m barrels, less than the 3.4m consensus. The FOMC was exactly as expected and today sees the US GDP figures which we assume they will have taken into account.
Opec Secretary General Abdalla El-Badri spoke at a conference in London yesterday and his words were a classic example of how to try and talk your own book. Whilst telling the market not to panic about crude prices and that there was no change to the fundamental supply and demand situation, he also slipped in a couple of complete fairy stories. He suggested that 50% of tight oil in the world is at risk at $85 oil which I don't agree with, neither do my former colleagues at WoodMack I understand. He also predicted that there would be no change in Opec output in 2015 and that all would be just fine, words like ‘wake up’ and ‘smell the coffee’ come to mind although one must remember that he is just the messenger...
Opec Secretary General Abdalla El-Badri spoke at a conference in London yesterday and his words were a classic example of how to try and talk your own book. Whilst telling the market not to panic about crude prices and that there was no change to the fundamental supply and demand situation, he also slipped in a couple of complete fairy stories. He suggested that 50% of tight oil in the world is at risk at $85 oil which I don't agree with, neither do my former colleagues at WoodMack I understand. He also predicted that there would be no change in Opec output in 2015 and that all would be just fine, words like ‘wake up’ and ‘smell the coffee’ come to mind although one must remember that he is just the messenger...
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