| Hey, OPEC, you did it, guys! Look: Yay! Oh... News of an apparent OPEC freeze agreement led U.S. E&P stocks to end Wednesday 6 percent higher. Wait, you didn't want to boost U.S. exploration and production stocks? Huh. Well, you did it anyway. Even better, you did it without technically having really done anything.
OPEC delegates have ostensibly agreed to cut their crude-oil production to around 32.5 to 33 million barrels a day. The range is the first clue there is much work yet to be done in order to turn those numbers into reality. The second clue is that production allocations for individual members haven't been set yet. Instead, how the pain gets shared will dominate OPEC's next formal meeting in November..........................................Full Article: Source
|