Thursday 27 November 2014

OPEC fail to agree on supply cuts

With OPEC failing to agree to reduce output, Oil prices have strongly snapped lower.. losing the $70 threshold.. now in the low $68s. The original target zone of 65/60 looks set to be hit before year end. Now the question is... 50/40s in 2015 ?

WTIC, monthly'2, rainbow


As I type (11.30am EST).. WTIC oil futures are at $68.38, a fall of $5.11... 6.9%. On any basis, it is a severe drop but not unexpected.

*gold bugs beware.... a 'Sunday night surprise' (post Swiss vote) is equally VERY likely...

Gold is currently -$5 at $1190...  I'd expect the 1080s at least 'briefly' before year end. That of course would have 'interesting' implications for the mining stocks.

Update from Mr Carboni

time for lunch.... more later....

Daily Wrap

US equities saw a natural day of micro chop, with the sp'500 settling +5pts @ 2072. VIX remains subdued, -1.5% @ 12.07 (intra low 11.91)... back to levels from mid September. Broader outlook remains for another 2-3% of upside before the next minor retrace of 4-6%


R2K, daily



Not surprisingly, a quiet day.

Looking ahead

For many.. it will be a day of roasted Turkey. I guess that is bullish.. yes?

Happy Thanksgiving to my American readers!

Goodnight from London

*I will probably post something on Thursday... not least on Oil, which will likely react strongly to the outcome of the latest OPEC meeting.