T’was the energy report before Christmas and OPEC is ready to cut, as they feel it is time to ease the great oil glut. It is a historic agreement and the market does care because their focus is on price and not market share.
The OPEC producers were in the same bed. The low price of oil they were beginning to dread. Even Non-OPEC Producers have agreed to a cap and the traders are betting that we could trade off the map.
Yet, at the end of the day it's compliance that matters, if they cheat on production the traders might scatter. While OPEC made prices rise in a flash, if they fail to comply the prices might crash.
Their goal to keep shale production in toe was somewhat successful as U.S. oil production has slowed. And even as rigs suddenly appear for shale to catch up it might take a couple of years. They started a price war so prices would fall like a brick and they think they won so they cut production real quick!
Non-OPEC producers like Russia are game and will join Opec Members that now I will name! Cut Iran! Cut Iraq! Cut Kuwait and Algeria! Cut, Venezuela! Cut UAE! Cut Qatar and Nigeria! Libya and Ecuador have their backs to a wall, but Saudi Arabia will cut enough for them all. So they will conspire on cuts like an evil cabal.
I think they will hold to their quota. As there is need to comply because when Donald Trump is President U.S.energy will ride high. With less regulations we will add to supply. With stimulus spending and less red tape to get through. The U.S. producer will compete and their just due.
And lower taxes will make growth go through the roof and for OPEC right now it is ther moment of truth. Down with production so prices rebound Donald Trump may tax them and run them into the ground. With trade shenanigans, Trump will put down his foot. So the days of taking advantage is almost kaput.
The U.S. economy is on its way back and with demand on the rise the frackers will frack. For energy producer’s things will be merry as Rick Perry is the new Secretary. Donald Trump's appointments are in the energy know and instead of wasting money on bad regulations they can start making some dough.
For the oil industry they are finally upbeat, they can produce oil instead of getting kicked in the teeth. President Barack Obama always gave them an ache in the belly. When he lifted sanction on Iran the deal seemed a bit smelly. He also banned drilling out in the Ocean shelfs and he did this to block Trump Trump, in spite of himself. The loss of a legacy Obama is beginning to dread because the shale revolution her terribly misread.
So, the U.S. people will get back to work, from the energy producers and the new shipping clerks. It has been awhile since the jobs rate was so low and as the economy expands the wages will grow.
But still our soldiers are fighting in lands far away and remember to pray for them each passing day. It is for our Freedom they put up this incredible fight so to them and all of Merry Christmas and good night!