Iraq's pumping record volumes. Iran's pumping record volumes. Russia and the Saudis are going full out. We are drilling again at a much faster level than before.
No wonder they've pushed back the fabled November meeting until the end of the month, according to Bloomberg reporting.
They can't freeze. They can't stop.
Something has to give though, or oil will trade down to below $40 for certain. As it is now, the stock market is actually putting the Trump rally behind it and is now back to focusing on oil -- and it doesn't like what it sees.
I am a believer that world growth will be stronger in 2017. Call me in the Chip Johnson school of thought -- Johnson being the CEO of the very well run Carrizo Oil & Gas (CRZO) .
Johnson has a lot of production shut in, because of what he says is a reluctance to leave money on the table. He's thinking oil could be appreciably higher next year.
The problem is that you will not get there if there isn't some OPEC discipline -- and these production figures we are getting now are quite frankly insane vs. what's needed. Then again, though, it's not like the oil companies have some sort of marketing arm that can have them switch to another product. It doesn't work like that.
I say a couple of bucks down has brought out the OPEC put, and this time will be no different.
But the couple of bucks is going to hurt the stock market more than it will hurt the oils, because we are back with oil tail-wagging the stock-dog, again.