Did The Market Miss The Fact That One OPEC Member Is Already Significantly (Voluntarily) Cutting Production? - #Oil #UNG

By Devon Shire

What the entire world of oil producers and oil traders is dying to know is whether OPEC will defend the price of oil at its upcoming November 27 meeting. And here we are with an OPEC member voluntarily cutting production by 300,000 barrels, which for Qatar is almost 40% of production.

Taking 300,000 barrels per day off the market is in itself big news. What it signals about what OPEC is planning to do perhaps even more important. . . .

Qatar dropping production by 300,000 is a major decrease and is an intentional decision as evidenced by how reliable Qatar’s production is.

I’m perplexed as to how this news was ignored. And I can’t imagine that Qatar would be doing this without discussing the issue with the larger and more important OPEC members like Saudi Arabia, Kuwait and the United Arab Emirates. . . .

Qatar’s move has for whatever reason been ignored by the market. It isn’t going to take a big move by the rest of OPEC to get oil back to $90 to $100 per barrel before 2015 is half over.

OPEC Implications For Investors

Don’t panic if you are long the energy sector, this is just a bump on the road. If you are interested in getting long or longer companies exposed to oil prices now is the time to be aggressively buying because many companies have share prices that are a fraction of where they were just a couple of months ago.

Read the full article here.

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