News Details

Crude oil prices could plunge even further after last weeks OPEC meeting Russia refused to cut production further

(Feb 10, 2020)

Higher to record U.S. shale production and oil demand destruction from coronavirus fears has led crude oil prices to plunge over $15/barrel thus far in 2020 and is on target to fall even further and test the $45 - $46 support level not seen since December of 2018!

As the world’s largest oil consumer, a slowdown in China’s economy suddenly has a real potential of impacting oi demand growth by as much as 20% in the 1st quarter but could be short-lived as flu season peaks and comes to an end as temps start tow warm up. OPEC now has to contend with U.S. shale growth and a short-term impact on demand.

 At last weeks emergency meeting OPED had hoped to cut production by an additional 600,000 bpd but Russia refused to participate ahead of next meeting in March.

Maurizio “Moe” Agostino
Moe is the Chief Commodity Strategist. He is responsible for developing plans and assisting clients in the feed, grain and livestock industry to help them protect themselves from commodity price swings. Moe holds a Derivatives Market Specialist (DMS) designation as well as an Honors Degree in Business Administration. Moe has more than 15 years of financial services industry experience.