Opec+ agrees to redistribute oil cuts under Saudi pressure

Opec+ will adjust its output target and redistribute production cuts between its members under pressure from Saudi Arabia, which has long carried an outsized share of the burden. The group, which pumps more than half the world’s oil, agreed in Vienna on Friday to reduce its output target by 500 000bbl/d, said delegates, bringing it in line with recent production levels. Saudi Energy Minister Prince Abdulaziz bin Salman gave a clear signal before the meeting that his priority was to get some members to stop cheating and implement the cuts they have promised.

Opec+ agrees to redistribute oil cuts under Saudi pressure

Opec+ will adjust its output target and redistribute production cuts between its members under pressure from Saudi Arabia, which has long carried an outsized share of the burden. The group, which pumps more than half the world’s oil, agreed in Vienna on Friday to reduce its output target by 500 000bbl/d, said delegates, bringing it in line with recent production levels. Saudi Energy Minister Prince Abdulaziz bin Salman gave a clear signal before the meeting that his priority was to get some members to stop cheating and implement the cuts they have promised.

Weekend Show – Sat 30 Nov, 2019

Hour 1 – A Focus on Resource Stocks and Building a Hit List For Tax Loss Selling
Full First Hour

I hope everyone had a very happy Thanksgiving down in the US!

On the first hour I focus on the resource sector. Topics range from metals to energy and thoughts on the two multi-million to billion dollar deals in the resource sector. Please keep in touch by emailing me at Fleck@kereport.com.

Exclusive Company Interviews and Commentary This Week


Segment 1 and 2 – Jesse Felder
Segment 3 – Josef Schachter
Segment 4 – John Kaiser

Chris Temple from The National Investor – Wed 27 Nov, 2019

A close look at the oil sector – Price, Supply/Demand, and Major Players That Will Drive 2020

Chris Temple kicks off today by focusing on the energy sector and more specifically oil. The oil sector has been boring all year after peaking in late April at $66/barrel and trading in a range the rest of the year. We look at the supply/demand metrics as well as discuss the balance of power that has shifted int he past few years. No longer just an OPEC news driven market now that the US plays a bigger role. However we need to be aware of potential bankruptcies of US companies that could shake the sector.

Click here to visit Chris’s website and read over his 2020 outlook article.

Opec’s flaring political crises add new risk for oil supplies

The Organisation of Petroleum Exporting Companies (Opec) may have no appetite to cut oil production deeper when it meets next month, but flaring political crises across the group are once again threatening supply. Unrest erupted in Iraq and Iran this month – two of the Middle East’s biggest producers – as people took to the streets protesting financial hardship and bad governance. That’s adding to the range of supply threats already afflicting the Organization of Petroleum Exporting Countries, from economic collapse in Venezuela and simmering discontent in Algeria to the recent missile attack on Saudi Arabia.

When Oil Collapses Below $40 What Happens?

November 15, 2019
Chris Vermeulen
TheTechnicalTraders.com

 

 

 

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When Oil Collapses Below $40 What Happens?

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Russia is making more money from Opec+ deal than Saudi Arabia

Russia has earned more money this year from the Opec+ deal than Saudi Arabia, underscoring how the kingdom has carried a greater share of the burden of production cuts. Saudi Arabia on average has cut production almost ten times deeper than Russia since the countries joined forces at the end of 2016, according to estimates in the International Energy Agency’s monthly oil market report published on Friday. Yet Riyadh has received just three quarters of the additional financial benefit enjoyed by Moscow, the data show.

Chris Vermeulen – The Technical Traders – Thu 14 Nov, 2019

Has The move Out Of The Safe Assets Run Its Course?

Chris Vermeulen, Founder of The Technical Traders joins me to discuss the shift over the past few months away from the safe haven assets and into the more risk on equity markets. He points to the record outflows in some of the gold ETFs as a sign that the selling could finally be getting exhausted. We wrap the interview with a comment on the oil price.

Click here to visit The Technical Traders website.

The Truth About the Dollar

This post The Truth About the Dollar appeared first on Daily Reckoning.

I’ve been to Italy four times, including my most recent trip two weeks ago. So it’s really interesting to look at the different foreign exchange rates in place at the time of my various visits.

Just as an example, on this most recent trip I was getting roughly 21% more for my money than the last time I visited four years ago. That makes a huge difference!

Of course, unless they’re frequent travelers, most people don’t really pay attention to how well the greenback is doing against other world currencies. And that’s a shame … especially if they invest.

A Strong Dollar

After the Fed cut rates for the third time this year, the greenback slipped a bit, but the dollar is still pretty darn strong relative to a basket of the world’s major currencies.

So it pays to look at how that affects different types of investments …

For starters, a strengthening dollar can have a big impact on gold, oil, and other commodities.

Now, there are a lot of forces driving gold’s price at any given point in time.

But pull up a chart of the yellow metal and you’ll see that the dollar’s strength typically keeps gold down.

Pull up a chart of oil, and you’ll often see the same basic pattern.

Again, there are all kinds of other factors at play in the oil market – everything from seasonal demand, to geopolitical developments.

But the point is that the greenback has direct – and clearly visible – impacts on various natural resource markets.

It also affects many U.S. stock investments that are unrelated to resources.

Foreign Money, U.S. Companies

A lot of people assume that currency exchange rates don’t matter a whole lot, especially if they stick to domestic stocks.

That’s not necessarily true.

When American companies sell their products abroad, they typically collect the money in foreign currencies then translate those sales back into U.S. dollars.

That means their results can end up getting crimped by unfavorable exchange rates unless they’re using futures or other hedges.

Therefore, foreign exchange rates can become a big theme during earnings reports.

That’s especially true for big multinational companies, some of which derive more revenue from overseas markets than they do domestically.

Just a few that come to mind based on 2018 numbers …

  • Apple Computer (63% of revenues from foreign markets)
  • General Electric (61%)
  • Johnson and Johnson (71%)
  • Intel (80%)

The list goes on and on.

Meanwhile, a stronger dollar also makes a substantial difference for anyone investing in FOREIGN companies.

First off, it affects the value of your holdings as they’re translated back into U.S. currency.

In addition, if your foreign shares pay out dividends, a stronger dollar also affects the value of those distributions in the same way it affects a U.S. company’s earnings – i.e. payments initially issued in other currencies become smaller distributions when they’re translated back into greenbacks.

If you’re holding for the long-term I wouldn’t worry all that much about this. And I still think it always makes sense to have some of your money invested in overseas investments, precisely because it can provide a nice hedge for times when the dollar is falling.

Keep One Eye Overseas

My overall point is that it pays to watch what’s happening in the foreign exchange market– whether you’re planning to leave the country or not.

Not only can you directly profit from moves in the forex (foreign exchange) market through various types of investments – everything from exchange-traded funds to futures.

But understanding what the dollar is doing – and what it’s likely to do going forward – also has big implications for the various companies you might be invested in as well. So even if you don’t directly invest in forex, keep an eye on the dollar. It’ll pay to do so in the long run.

To a richer life,

Nilus Mattive

Nilus Mattive

The post The Truth About the Dollar appeared first on Daily Reckoning.