While OPEC reached an “understanding on a production cut“, if not exactly a production cut deal just yet – since every OPEC member’s production has yet to be determined, the sellside has responded. The following is a collection of analysts’ reactions following the OPEC announcement.
Societe Generale Global Head of Oil Research Mike Wittner
- “The cut is clearly bullish,” Wittner says by phone
- “The number of actual barrels that will be taken off the market is unclear. What’s much more important is that the Saudis appear to be returning a period of market management”
Price Futures Group Senior Market Analyst Phil Flynn
- “When you have the first OPEC agreement of 8 years and non-OPEC cooperation, it’s going to be bullish”
- “This will push us back into the $50 handle, maybe give us the potential to get into $60 or maybe even $70” next year.
Oppenheimer & Co. Managing Director Fadel Gheit
- “The supply is still high, demand growth is getting weaker and shale production is going to level and we will start moving up again,” Gheit says by phone
- “Barring an across the board 5% production cut by OPEC, nothing else is going to work”
- “I think it’s more politics than anything else”
Again Capital LLC Founding Partner John Kilduff
- “The market is rewarding the show of cooperation”
- “Their acts haven’t matched their words so far but the market is giving them the benefit of the doubt. The desperation of Saudi Arabia to reach an agreement is readily apparent and increases the chances of success”
RBC Capital Markets energy strategist Michael Tran
- “The bottom line is, we need to see more details,” Tran says by phone. “At this point, execution is what matters most and we need to see tangible steps toward that”
- “That said, regarding the group quota, moving back towards a system of checks and balances is certainly very constructive for this market given that accountability is what has really plagued OPEC over recent years”
Source: Bloomberg
The post “More Politics Than Anything Else” – Wall Street Reacts To The OPEC Oil Production Cut Deal appeared first on crude-oil.top.