Episode 89 - OPEC Meeting and Oil Cuts | Goldman Sachs Price Predictions | Saudi Aramco

OPEC’s Decision To Cut Production Is A Risky One, Here’s Why

https://www.forbes.com/sites/ellenrwald/2019/12/06/opecs-decision-to-cut-production-is-a-risky-one-heres-why/#433968ad662d

- Risky because if it doesn’t support oil prices then OPEC will seem weak and ineffective.

- Cut for the first quarter.

- Saudi oil minister basically said that shale oil should thank them for the decision to cut oil production and that its a Good Friday for Texas and Oklahoma

OPEC, Allies Finalize Deeper Oil Production Cuts

https://www.wsj.com/articles/opec-allies-finalize-deeper-oil-production-cuts-11575644555

- Prince Abdulaziz bin Salman said that “Aramco will be higher than the $2 trillion, and [the press] can bet this will happen.”

- Angola stormed out of the meeting, but later returned.

Oil slips as weak China exports highlight trade war impact

https://www.cnbc.com/2019/12/09/oil-markets-china-exports-in-focus.html

- data showed Chinese exports declined for a 4th straight month and oil prices declined on this news.

- African swine fever (ASF) in farms in China is impacting Chinese pork farming in China.

- Trump tweets: We are dong well with China in our trade deal

https://www.porkbusiness.com/article/global-threat-african-swine-fever

On Price Predictions:

Goldman Sachs says oil prices are going nowhere next year (from Oct 23)

https://www.cnbc.com/2019/10/23/oil-prices-goldman-sachs-says-brent-futures-are-going-nowhere-in-2020.html

Goldman raises 2020 oil price view on OPEC-led inventory tightness (from today)

https://www.reuters.com/article/us-oil-research-goldman/goldman-raises-2020-oil-price-view-on-opec-led-inventory-tightness-idUSKBN1YD0IZ

- revising Goldman Sachs oil price forecast - now up to $63.00/barrel

Aramco IPO

The $26 Billion Question and What Else to Expect in Saudi Budget

https://www.bloomberg.com/news/articles/2019-12-09/the-26-billion-question-and-what-else-to-expect-in-saudi-budget

- Budget deficit at 6.4% of GDP

- 2020 economic growth expected to be 2.3% (2019 economic growth only 0.4%)

- 10% of expenditures covered by $29

Saudi Aramco’s IPO value rises to $29.4 billion: Banker

http://english.alarabiya.net/en/business/2019/12/09/Non-Saudi-institutional-investors-allocated-23-pct-of-Aramco-IPO-Banker.html#.Xe50Xi395ZI

https://thestarphoenix.com/news/local-news/heavy-smoke-from-train-derailment-stops-highway-16-traffic

- Canada needs more pipelines because transporting oil by rail car is dangerous.

- Catch Ellen on Bloomberg TV Wednesday morning and also on TRT World, Money Talks

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