Preparing for OPEC Meeting S5 | E36
Episode description
Oil market participants are anxiously in “wait and see” mode ahead of the OPEC meeting and Greg shares his presentation summarizing market sentiment over recent months.
Greg discusses the current state of oil markets, highlighting a recent sell-off in Brent crude below $90 per barrel at the beginning of Q4. The impact of the Israel-Hamas conflict and a subsequent overcorrection, led to prices briefly dropping below $80.
RINs have been weak with news of a strong soybean harvest supporting biofuel supply, renewed Russian gasoline exports and weak driving demand.
The market is now focused on OPEC's upcoming meeting and potential decisions regarding production cuts, with uncertainty about oil prices in 2024. The overall sentiment suggests a recent shift towards a bearish outlook. Greg suggests that even yesterday and this morning, we're seeing some indication that there is some opportunistic buying ahead of this meeting.
Vincent weighs with his Trade Idea of the week, to go short in the Jan/Feb Sing 0.5 spread.
Links below to Greg and Vincent's LinkedIn pages:
Greg Newman: https://www.linkedin.com/in/oilderivatives/
Vincent Wu: https://www.linkedin.com/in/vincent-wu-099816125/