Following yesterday's modest drop in US crude production and yuuge build in inventories, headlines about possible Venezuela meetings sent algos into panic-buying mode. This morning the headlines are from Nigeria, whose Petroleum Minister "expects a dramatic price move" claiming a meeting between OPEC and NOPEC will happen on March 20th. Combine that idiocy with significant US Dollar weakness this morning and the surge in Oil ETF share creation and the perfect storm of higher prices in oil (as hedgies pile in).
Nigeria’s Petroleum Minister Emmanuel Kachikwu anticipates dramatic price move after meeting between OPEC and non-OPEC producers, he says at conference in Abuja, the capital.
“Both the Saudis and the Russians, everybody is coming back to the table”
“We’re beginning to see the price of crude inch up very slowly. But if the meeting that we’re scheduling, it should happen in Russia, between the OPEC and non-OPEC producers happen about March 20, we should see some dramatic price movement”
Later confirmed mtg planned to take place on March 20
Producers target recovery to $50 a bbl
Crude banged above $35...
Snapping crude back above $35 to one-month highs...
As The US Dollar tumbles...
As The USD drop led the surge as US equities opened...
WITH ETF creation soaring - in less than a year shares outstanding have surged from 125mm to over 435mm...
As hedgies pile in...
Size of hedge-fund bets on oil stocks rising increased 77% over the week ended Feb. 18, biggest gain in any sector pic.twitter.com/2hs8aFXipq
— ValueWalk (@valuewalk) March 3, 2016