OPEC Tells Us There’s More Oil Downside

Posted by Elazar Advisors, LLC

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Summary

– OPEC reported higher production.

– They restated past production numbers higher as well.

– We expect production to race higher into the OPEC meeting.

– When matching that with seasonality, that is not a good thing for oil.

OPEC supply numbers were worse than expected. They also updated older numbers higher. The US supply numbers were also higher. We don’t see how OPEC can come to terms on supply. We think the global economy could be slowing too fast for countries to stick to a deal. We still see downside for oil.

First, Let’s Look at OPEC Production

Here are the new numbers they gave on production (pg. 61 of PDF). July was higher than May and June.

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….read more HERE