- Crude oil prices (USO -2.3%) are firmly in the red after an OPEC technical meeting brings no decision on further production cuts despite a mounting global supply glut and weakening demand growth for crude, instead focusing on bringing Nigerian and Iraqi output down to agreed quotas.
- "It is effectively a hidden cut, because if countries like Nigeria and Iraq do comply with the voluntary cuts, we will end up with less barrels in the market," says one delegate.
- WTI October crude -2.5% to $54.37/bbl, November Brent -2.2% to $59.48/bbl.
- Today's accompanying slide in energy stocks (XLE -0.6%) has pressured the sector back below its 50-day moving average.
- Among today's biggest decliners: NBR -10.9%, SWN -7.3%, RIG -5%, NOV -4.8%, XEC -4.4%, CHK -3.3%, CXO -3%, HP -2.8%, HAL -2.7%, SLB -2.5%.
- ETFs: USO, XLE, OIL, UWT, UCO, XOP, VDE, OIH, DWT, BNO, ERX, GUSH, SCO, BGR, XES, DBO, DRIP, ERY, FENY, DIG, NDP, DTO, OILU, FIF, USL, IYE, DUG, IEO, IEZ
OPEC punts on further production cuts; crude prices, energy stocks sink
United States Oil Fund, LP ETF (USO), XLE, NBR Stock, SWN Stock, RIG Stock, NOV Stock, CTRA Stock, CHK Stock, CXO Stock, HP Stock, HAL Stock, SLB Stock, OIL-OLD, UWT, UCO, XOP, VDE, OIH, DWT, BNO, ERX, GUSH, SCO, BGR, XES, DBO, DRIP, ERY, FENY, DIG, NDP, DTO, OILU-OLD1, FIF, USL, IYE, DUG, IEO, IEZ, USOU, OILD, CRAKCarl Surran, 114 Comments