OPEC Oil Production Hits 8-Year High: Remember The Production "Freeze"?

Takeaway: Hedgeye Potomac analyst Joe McMonigle called Saudi Arabia and Iran's plans to ramp oil production despite all the "freeze" talk.

OPEC Oil Production Hits 8-Year High: Remember The Production "Freeze"? - OPEC cartoon 02.16.2016

 

Remember the much-touted oil production "freeze"?

 

Oil prices tumbled -4% today following an IEA report that OPEC oil production hit an eight-year high last month. This news comes six months after discussions between OPEC and non-OPEC countries to "freeze" production fell apart.

 

Hedgeye Potomac Senior Energy analyst Joe McMonigle saw it coming. (Click here to read his prescient research note written back in March.) Here's what he said:

 

"We continue to see no chance of a production cut at this time and maintain our thesis that Saudi Arabia believes its market share policy is winning." 

 

Take a look at the OPEC oil production chart below from Bloomberg. As you can see, Saudi Arabia and Iran have been ramping up production just as McMonigle predicted.

 

OPEC Oil Production Hits 8-Year High: Remember The Production "Freeze"? - oil prod freeze


SECTOR SPOTLIGHT | Live Q&A with Healthcare Analyst Tom Tobin Today at 2:30PM ET

Join us for this edition of Sector Spotlight with Healthcare analyst Tom Tobin and Healthcare Policy analyst Emily Evans.

read more

Ouchy!! Wall Street Consensus Hit By Epic Short Squeeze

In the latest example of what not to do with your portfolio, we have Wall Street consensus positioning...

read more

Cartoon of the Day: Bulls Leading the People

Investors rejoiced as centrist Emmanuel Macron edged out far-right Marine Le Pen in France's election day voting. European equities were up as much as 4.7% on the news.

read more

McCullough: ‘This Crazy Stat Drives Stock Market Bears Nuts’

If you’re short the stock market today, and your boss asks why is the Nasdaq at an all-time high, here’s the only honest answer: So far, Nasdaq company earnings are up 46% year-over-year.

read more

Who's Right? The Stock Market or the Bond Market?

"As I see it, bonds look like they have further to fall, while stocks look tenuous at these levels," writes Peter Atwater, founder of Financial Insyghts.

read more

Poll of the Day: If You Could Have Lunch with One Fed Chair...

What do you think? Cast your vote. Let us know.

read more

Are Millennials Actually Lazy, Narcissists? An Interview with Neil Howe (Part 2)

An interview with Neil Howe on why Boomers and Xers get it all wrong.

read more

6 Charts: The French Election, Nasdaq All-Time Highs & An Earnings Scorecard

We've been telling investors for some time that global growth is picking up, get long stocks.

read more

Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

read more

Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

read more

A Sneak Peek At Hedgeye's 2017 GDP Estimates

Here's an inside look at our GDP estimates versus Wall Street consensus.

read more

Cartoon of the Day: Green Thumb

So far, 64 of 498 companies in the S&P 500 have reported aggregate sales and earnings growth of 6.1% and 16.8% respectively.

read more