Where Oil is Headed After OPEC Hike
OPEC is going to raise output by 1m barrels per day in a Saudi-led decision. But what will that mean for prices and oil-related companies? One might assume that higher output would be bad for prices, but in this instance, likely not. The reason why is that the high output is offsetting lost production from OPEC members like Venezuela and Iran. Libya is also experiencing lower production. All told, the three countries may combine for a 1.5mbd to 2.3mbd drop by the end of the year.
FINSUM : This hike is really just a partial offset to a much larger decline that is going on. It seems like it would be wise to stay bullish on prices.