Despite the dramatic reaction of oil markets to news that the OPEC+ meeting would be postponed, oil prices are set to end the week with little real change as traders now await the outcome of the November 30th meeting. The seesawing in oil prices seen over the past weeks has wound down as the market awaits the OPEC meeting, postponed from this week to November 30 and changed from an in-person summit to an online event. ICE Brent front-month futures have settled within a narrow frame of $81-83 per barrel the entire week, with the Thanksgiving holidays in the US keeping the main developments firmly focused on the Eurasian landscape. A better outlook for China’s property sector was offset by higher US inventories, so OPEC+ will be the trendsetter for the next weeks’ pricing direction.NN: I learned a long time ago before the masses became aware of fake news a important lesson. Watch what thet instead of listening to what they say, And here is what they are doing:
According to Standard Chartered, the U.S. oil hedge book are 62% below 2020 levels.
Now let me tell you what they are DOING. You hear the bullshit about oil going into the sixites because demand is collapsing for oil. That ts the bullshit they tell you. If they beloved that they would be hedging at $80 oil to protect their profits. They flat out are not. Which means they are planning for much higher oil prices. Oil producers typically use a short hedge to lock in oil prices during times of falling crude prices, if they believe prices are likely to go even lower in the future. U.S. producers obviously are not convinced there’s much downside to oil prices, as current hedging activity proves.