WTI Crude algos ran stos this morning to pre-API levels on the heels of Russian and Saudi comments, but those gains are fading fast as the machines run out of ammo.
API's surprise crude build sparked overnight selling...
But this morning's ramp after Saudi/Russia jawboning is fading fast.
Russia seemed to confirm its agreement:
- *RUSSIA ENERGY MINISTER EXPECTS EXTENSION OF DEAL TOMORROW
- *RUSSIA'S NOVAK SEES GENERAL UNDERSTANDING ON DEAL EXTENSION
- *NOVAK: DEAL PARTICIPANTS SHOWING ‘RESPONSIBLE APPROACH’
- *NOVAK: WE WILL DISCUSS RESULTS AND STRATEGY AFTER APRIL 2018
And Saudis:
- *SAUDI ENERGY MINISTER: RESULTS OF OIL CUTS HAVE BEEN GRATIFYING
- *OIL STOCKPILE DECLINE ACCELERATED IN THIRD QUARTER: AL-FALIH
- *OPEC AND ALIIES CAN'T BE COMPLACENT: SAUDI MINISTER
- *A GOOD DEAL MORE HARD WORK ON CUTS IS ESSENTIAL: AL-FALIH
- *OPEC'S JOB IS NOT DONE: AL-FALIH
- *WE NEED THE FULL COMMITMENT OF ALL COUNTRIES: AL-FALIH
All of which is great news for US Shale as production surges to new record highs.
As Goldman's Currie notes (as we detailed here):
- *GOING INTO OPEC MEETING, RISK IS TO THE DOWNSIDE: CURRIE
- *MARKET HAS PRICED IN 6-9 MONTH OPEC DEAL EXTENSION: CURRIE
- *CURRIE SEES $2.50 ADD TO OIL PRICE FROM OPEC MEETING RUNUP
So sell the news?
