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ISSUES....
Inside, confidential and off the record
Steady as she is...
The world is preparing for the OPEC meeting later this month and the parties to the meeting are setting their positions. Over the weekend, the Saudis made their position clear: nothing… absolutely nothing… shall be done at the upcoming meeting. While attending a meeting in Egypt of various Arab states, Saudi Arabia’s Oil Minister, Mr. Ali al-Naimi said there was absolutely no reason why the cartel should change its production quota at a meeting later this month in Angola. Commenting in unusually up-beat terms, Mr. al-Naimi saidEverything is so good now, we don't have to think very hard….The market is stable right now, volatility is minimum and everybody is happy with the price. It is in the right range.
Kuwait’s Oil Minister, Sheikh Ahmad Abdullah al- Sabah, seconded Mr. al-Naimi’s comments, noting that "There will be no increase in production whatsoever.”
The problem for Mr. al-Naimi and Sheikh al-Sabah is that the market is breaking below their “right range” even as we write:
Jan WTI down 157 74.06-11
Feb WTI down 132 76.09-15
Mar WTI down 120 77.68-73
Apr WTI down 112 78.88-93
May WTI down 108 79.77-82
Jun WTI down 107 80.53-58
OPEC Basket $76.81 12/04
Henry Hub Nat-gas $4.55
- Dennis Gartman/ The Gartman Letter 12/ 08 / 09
- For more on interesting comments, you can subscribe to The Gartman Letter by contacting Dennis Garthman: Phone - Fax: or email : dennis@thegartmanletter
ISSUES.... 12/08/09
ISSUES.... Inside, confidential and off the record
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