During Hedgeye’s morning research call with the entire analyst team, Keith McCullough and Joe McMonigle discussed OPEC’s failure to reach a deal with Russia last Friday that sent oil prices to record lows in trading Monday.
You can listen to the OPEC oil discussion excerpt with McCullough and McMonigle from the Hedgeye’s morning research call by clicking here.
McMonigle, who attended OPEC’s meeting in Vienna last week, described each side believed the other would blink and now both sides are surprised by developments but not turning back any time soon.
McMonigle said Russia’s sole objective in refusing to agree to continued production cuts is to target US shale production. He described the comments from the meeting as episode of “In the Kitchen with OPEC.” Russia urged against “trying to catch a falling knife” on prices due to coronavirus. OPEC and Saudi Arabia said Russia might need to “touch a hot stove” to see the wisdom of production cuts.