December 2016

[admin]

We have a new article out this morning:

• OPEC has shot itself dramatically in the foot with the market share based strategy two years ago, foregoing hundreds of billions in revenues.
• The about-face this month is more rational, but it's very unlikely the old order is going to be restored.
• OPEC countries should take what they can get and use this to diversify their economies.

OPEC Vs. Reality, Which Will Give First? - The United States Oil ETF, LP (NYSEARCA:USO) | Seeking Alpha

Obviously not everybody agrees...

Call it a pre-Christmas lottery ticket, but someone in the oil market has been busy making a bold bet, buying contracts that will be profitable if oil surges again to $100/bbl. The $100 December 2018 call option -- a contract that gives the right to buy December 2018 futures at $100/bbl -- was the most traded contract on Tuesday across the whole ICE Brent market, the latest sign of resurgent optimism in oil.

Oil seen at $100 by year-end 2018 in lottery ticket options trade