The expiration of October trading certainly played a disproportionate role in the record one-day gain, as it exercised a huge pressure on short positions. The meteoric rise also illuminates how much the vacillation is due to speculative activity.
OPEC’s meeting tomorrow will almost certainly result in talk of cutting production, but not much in the way of concerted action. Member nations’ motivations are not synchronized, so consensus is exceedingly unlikely. Iran wants to impose OPEC-wide decreases, but the UAE thinks current levels are appropriate. Although OPEC will not move together on this issue, some countries (notably Saudi Arabia) are likely to retrench significant volumes.
Shares of oil producing companies fell on Tuesday as crude oil prices dropped, plunging to their lowest price since April. For more information, click here
While the world is focusing on Olympics for the next few weeks, Marathon Oil is jumping over hurdles of its own to win over investors. For full story, click here
Shares of Anadarko Petroleum fell 6%, as crude prices went down on news of reduced consumer spending. For more news, click here
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