OPEC deal: A boon for non-OPEC members - IB Times

With oil back in the driver’s seat ahead of the OPEC decision, we talk to Gaurav Sharma, Oil Analyst at IB Times, who says a potential OPEC output cut deal later this week would be a boon for Shale producers and other non-OPEC members.

This is a must watch video for oil traders who believe a potential OPEC deal would result in a more sustained rally. This is because Sharma makes a compelling case against betting on a sustained oil price rally and actually sees prices moving back to square one within three months.

Key quotes

OPEC credibility is at risk

A five dollar pop in oil following an OPEC deal could be undone in three months

Trading Tip: The market is very skeptical. Make a long call on a juicy sound byte. But the overall outlook remains bearish

Trading Tip for Spread Betters: Do not obsess with supply side factors. Also take into consideration the fact that the demand side is weak.

OPEC deal and a resulting pop in prices could bring in more supplies from the non-OPEC members - Shale. There is already evidence of increased supplies from North Sea.