It was just reported that OPEC + Russia have reached a deal to “restrict supply”, by CNN (https://www.cnn.com/2019/07/02/investing/premarket-stocks-trading/index.html) which is becoming the fake news king. There was no agreement on any production restriction or cuts and the reasons were given in the article in regard to this issue and others are just pathetic.
Here is the direct quote from OPEC:” In view of the current fundamentals and the consensus view on the outlook for the remainder of 2019, the Conference decided to extend the voluntary production adjustments agreed at the 175th Meeting of the OPEC Conference for an additional period of nine months from 01 July 2019 to 31 March 2020.” (https://www.opec.org/opec_web/en/press_room/5591.htm). And you can go back to check the language of of the 175th meeting (https://www.opec.org/opec_web/en/press_room/5278.htm) when the “Conference decided to adjust OPEC overall production by 0.8 mb/d from October 2018 “. Remember the world consumes 80+ million barrel a day.
The rest of the article of CNN is laughable really, this part in particular “OPEC will restrict the supply of oil for another nine months in a bid to support prices pressured by weakening economic growth and skyrocketing American production.” Skyrocketing American production!!! oh ya that is why we are running around imposing tariffs on any thing imported from aircraft parts to toothpicks.
Even more laughable is the question of Boeing receiving government subsidies. Here is a list of the largest 100 government contractors in the USA for 2018 (https://washingtontechnology.com/toplists/top-100-lists/2018.aspx), do see who is number 6? Where is the doubt exactly?
Nevertheless, the impression OPEC wants to give us is that “oil” supply is being monitored. And the word the speculators are trying to get out, is oil prices are going up for sure. With the “geopolitical” situation in Iran and Syria if oil prices have not made it above $200 already, they are not going anywhere soon. Now, previously I mentions that Saudi Arabia needs $80 a barrel for budget reasons (Now you see it and now you do not) and Russia can get by on $60 (Russia and crude oil). That might be achieved but has nothing to do with any of this BS reasons that you will hear about in the media. These restrictions are still in play and any “shortage” or “deficit” has to be made up sooner or later.