OPECs Special Meeting
Tomorrow, before the market opens, OPEC will host a special meeting. No one is expecting anything material to come from this meeting because it was prompted by Venezuela, a country that is being hit hard and probably hardest by the decline in oil prices.
However, I have stated clearly that I believe that OPEC will soon cut the one million barrels a day it added to production because the objective of doing that has already been achieved. Although supply may still seem to be high, production channels have changed and that is exactly the objective OPEC aimed to achieve.
I am not sure if anything will come of tomorrow's meeting, I don't know one analyst who is expecting them to cut production, but even if it does not happen tomorrow I do believe it happens soon. The meeting is dubbed a technical meeting, and because the meeting was largely influenced by Venezuela, if nothing more I expect the discussion of production cuts to be the main topic of conversation and a possible timetable may be revealed.
If that happens the sentiment in oil is going to start to shift.
Stocks that may be affected include:
- Chevron Corporation (NYSE:CVX)
- Exxon Mobil Corporation (NYSE:XOM)
- Occidental Petroleum Corporation (NYSE:OXY)