Barron's: "Oil Should Be Rallying After OPEC Says It Won’t Raise Production. Here’s Why It Can’t."

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Barron's: "Oil Should Be Rallying After OPEC Says It Won’t Raise Production. Here’s Why It Can’t."

Excerpt from Barron’s quoting DataTrek’s Nick Colas:

…. “The International Energy Agency reduced its estimate for 2019 oil demand in a report on Wednesday. Demand in Brazil, China, and Japan has lagged the IEA’s estimates this year. Oil has been on a nice run this year, with Brent rising 34%, but that run could be over now, writes Nicholas Colas, co-founder of Datatrek Research.

“The ‘long oil’ trade is getting long in the tooth,” he writes. “Fears of a global economic slowdown/recession are swamping geopolitical concerns regarding Iran. West Texas Intermediate crude prices peaked in late April at $66.30/barrel, well short of their October 2018 highs of $76.41. Absent a dramatic increase in Middle East tensions, oil prices seem (at best) stuck in neutral”….

Read the full article here on Barron’s!