OPEC countries essentially cut 1 million barrels of oil a day from the 33 million they produce. This is a farce of a deal

First off, there is no way for any of the OPEC countries to know who is cheating and whether each one is really cutting 100k barrels a day each. This is a bull crap agreement and in the thick of things, doesn't mean anything to the overall supply side story. The current up move in oil is all animal spirit driven monkeys buying headlines. Lets not forget that even if this oil agreement was followed through with honesty and it happened to have a real sustainable affect on price, then all that would do is give the shale producers an early christmas gift to come back online and that will bring prices back down again. Basically in a nutshell, Oil can never go back up above $60 because Shale producers would bring so much oil online at that point that prices would get slammed back into the $40's. Pretty much the supply/demand story of oil is down on an economical and fundamental structure. Technology and the anemic economic growth story are attacking oil's prices to the downside like never before seen. There are not good currents to have when you actually need inflation to get rid of the bad debts in the economy. Oh well, too bad central planners.

Submitted December 09, 2016 at 10:50AM by 500pagesaday http://ift.tt/2hdehKu