Why This Week’s OPEC “Defection” Won’t Lower Oil Prices

by | published July 21st, 2017

Earlier this week, Ecuador’s Oil Minister Carlos Perez announced that the country would no longer abide by its commitment to the Vienna Accord.

That’s the OPEC-Russia deal to cut oil production and boost prices.

Now, pundits have been quick to misinterpret that as the first splintering of OPEC on its oil price regimen.

Actually, it may indicate far less than meets the eye.

Now, the Vienna Accord took effect in January.

Despite some questions about the equation between production on the one hand and exports on the other that agreement had held. It initially supported higher prices.

However, that scenario has more recently come under some pressure from the stubborn rise in production in the U.S. (not a party to the OPEC/non-OPEC deal).    

In the aggregate, OPEC remained faithful to the commitment with the association at or above the 100% compliance level until June. After that, there had been some retrenchment amid signs the agreement might be experiencing some pushback.

Some of this has been the frustrating recent decline in prices as OPEC exports as a whole began to increase – and American production rose even higher.

And then there was the signal from Saudi Arabia that the basis for the accord may be wearing thin. Riyadh telegraphed both a rise in production and in exports.

Still, no OPEC member officially indicated it would not abide by its part of the cuts… until Monday. Ecuador became the first.

How You Can Profit Where This $2 Billion Oil Fund Went Under

by | published July 18th, 2017

EnerVest, an investment fund that for 25 years had been buying up oil and natural gas wells, just went from being worth $2 billion…

To basically zero.

In the process, many investors have lost stakes, including pension funds, university endowments, and some otherwise savvy market players.

What happened here shows the perils of using debt to leverage investments in energy without expert advice – something I never recommend…

And it also reveals the next big investment opportunity in U.S. oil.

Here’s what you need to know…