I am definitely already dreaming of a white Christmas in Wyoming.
As December is upon us tomorrow, I have started listening to holiday music and making my Christmas wish list for Santa – as I read the news this morning, it looks like one of the items on my list is coming to fruition.
Oil prices are up, way up, this morning. The markets are posting large percentage increases – I hope this is truly reflective of a rebalancing in the markets.
As I write this article, WTI Crude Oil is up over 7.76% to $48.74 per barrel and Brent Crude is up 7.78% to $49.99 per barrel, according to Bloomberg Energy.
The headlines this morning reflect the cause of the increase in prices – OPEC will reduce production output by more than 1 million barrels per day:
- The New York Times: OPEC Reaches Deal to Limit Production, Sending Prices Soaring
- Bloomberg: OPEC Agrees to Cut Production in Drive to End Record Glut
- The Wall Street Journal: Oil Soars as OPEC Agrees to Cut Output – Market participants say the cuts could be significant enough to push oil supplies below demand levels sooner than expected
- The Denver Business Journal: OPEC reaches deal to cut oil production; Colorado energy company share prices jump
Many people are skeptical of whether this will actually have lasting, positive impacts that are more stable than the volatility we have had in recent years. This reportedly comes from unknown details in the deal’s mechanics – how long the deal will last and how it will be enforced.
Meanwhile, its beginning to look a lot like Christmas and I am hoping for snow. Let it snow, let it snow, let it snow!