Mish’s Daily: Skepticism Over the OPEC+ Oil Cuts
Mish’s Daily: Skepticism Over the OPEC+ Oil Cuts
Written by Michele ‘Mish’ Schneider
Despite the total cuts by all countries added at the November 30th OPEC+ meeting, oil sold off testing key support.
Countries like Angola have threatened not to stick to the new quota, promising to produce above target.
Meanwhile, Brazil confirmed it will join OPEC+. That means that some of the pressure by non-OPEC producing countries offsetting the cuts is now somewhat mitigated.
Nonetheless, the question is once the dust settles, will these 2.2 million barrels a day cuts hurt supply?
Furthermore, in a story by Consumer Reports, they wrote, EVs are less reliable than conventional vehicles, having nearly 80% more problems and are generally less reliable than cars propelled by conventional internal combustion engines.”
That could certainly help drive demand towards gas-fueled cars or at least hybrids. The real question is though, what does price tell us?
Looking at WTI crude oil, $75 is a great line on the sand for support.
$80 is the resistance to clear.
The best we can say after today’s action is oil is ranging and trying to figure out next moves.
The monthly chart which will change tomorrow December 1, shows price sitting right on both the 23 and 80-month moving averages.
70.43 in the US Oil Fund ETF USO is a good near-term point to hold to make the case for more upside.
We begin December above that level, good.
And if USO gets and holds above 73 even better. With weaker global economic expectations keeping prices under pressure, oil in general seems vulnerable to any wild shift in price and very much headline dependent.
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Mish in the Media
Business First AM Stock pick-Vaxcyte PCVX 11-29-23
Business First AM All about the bullish case for gold 11-29-23
Schwab Network with Nicole Petallides Mish talks about money supply, debt, the consumer, inflation and trends that could gain traction 2024 11-29-23
Your Daily Five StockchartsTV Good Ole Stock Picking-6 with actionable levels 11-28-23
Business First AM–Mish covers Palo Alto and how the quants picked up this winner 11-27-23
Real Vision Daily Briefing Mish and Maggie cover Inflation, Tech, Commodities and Picks 11-20-23
Yahoo Finance Mish and Rachelle talk trading range, fundamentals and how to think about commodities right now 11-20-23
BNN Bloomberg Open Mish covers the emotional state of oil and gold plus why small caps are key right now..plus a couple of picks! 11-17-23
CNBC Asia Partial Clip on Oil, OJ, Beans and how to trade volatile commodities 11-16-23
Making Money With Charles Payne Fox–Mish discusses small caps and how they could still run, the Fed and gives 3 picks 11-16-23
Business First AM-Tencent Music TME 10-27-23
Coming Up:
December 1 Making Money with Charles Payne Fox
December 3-December 13 Money Show Webinar-at-Sea
December 14 Final Bar Stockcharts Dave Keller
December 20 Outlook 2024 Stockcharts Panel
December 22 Yahoo Finance
December 28 Singapore Breakfast Radio
Weekly: Business First AM, CMC Markets
ETF Summary
S&P 500 (SPY) 450 support 465 resistance
Russell 2000 (IWM) 181 resistance 177 support
Dow (DIA) 360 resistance 346 support
Nasdaq (QQQ) 388 now pivotal
Regional banks (KRE) 45 pivotal
Semiconductors (SMH) 160-161 pivotal support
Transportation (IYT) 235 support 250 key resistance
Biotechnology (IBB) 120 pivotal
Retail (XRT) 65 resistance
20231201
