This article was published by The McAlvany Intelligence Advisor on Wednesday, March 22, 2017:
A measure of the success – and failure – of OPEC’s agreement to limit crude oil production can be seen in the chart of NYMEX crude oil price behavior (Sources below) dating from last fall. When the agreement was inked back in November, crude was at $46.50 a barrel. The price soared and traders got excited, putting in long bets that set records.
By early January, reality began setting in as compliance among the cartel’s members and non-members (who agreed to go along for the ride) began to wane. The roof fell in a couple of weeks ago when inventory builds continued to set records, and the price dropped through support at $50.
In other words, in OPEC’s attempt to birth an elephant, it succeeded in birthing a gnat.
Saudi Arabia maintained a stiff upper lip during the Houston oil conference, stating flat out that