market update

OPEC has agreed to First oil production cut in 8 years.Non Opec members have also pledged to cut some production led by Russia’s 300k BBl cut.Iran also “won” as it is allowed to increase Oil production by 90k a day till they reach 3.8 Mbbl a day   then freeze .IF we take everyone at their word,which we have to since no hard data is available yet,Worldwide oil production will be ~1.8 Mln BBl  lower per day starting Jan.1.Indonesia Was suspended as An OPEC member because she is a Net Importer of oil,Indonesia produces 770 barrels of oil a day.OPEC pledged to cut production to 32.5 Mbbls a day,so If Indonesia production is not counted how much did they actually cut? A gray area For sure.I would have expected a “buy the rumor sell the news reaction” today,but not the case so far.

Energy related stocks and ETF’s are having a banner day,not a surprise.Tech stocks being sold aggressively to raise funds for the “trump trade” Spoos unchanged ,nassy -48 handles  and dow +71.Higher Oil Weighing on long end bonds.Also weighing on Bonds is comments from new treasury Secretary hinting he is in favor of issuing longer term treasuries.Chicago PMI beat expectations but little attention paid to this release.

  •   Today could be an all time record volume day for Crude oil.
  • SPX and Dow  touched a new all time high today,Russell surprisingly lagging




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