OPEC Meets Tomorrow. Here’s What To Expect
OPEC ministers are gathering in Vienna for their meeting Wednesday. OPEC
President Al-Sabah said the cartel must work to drive high oil prices to a “more
reasonable” level, saying “Whenever it’s over $50, we have to react.” Iranian
Oil Minister Zanganeh said he was concerned about the high price of oil, but
feared that OPEC could do nothing about it. OPEC–already operating above
quotas–is expected to increase production by 500K barrels this week. Oil is at
a 7-week high. OPEC produces 40% of the world’s crude. The cartel anticipates an
additional 1.5 million barrel per day demand in Q4.
Tropical Storm Arlene caused no major damage to oil and
gas rigs after passing through the Gulf of Mexico over the weekend.
The dollar is at a 9-month high vs the euro; traders are wondering
what affect that will have on Q2 profits.
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Gold was lower after making a 5-week high; traders
booked profits after the economic data eased inflation fears.
Anticipated dry conditions in the corn belt sent corn
prices higher; traders are expecting prolonged support for prices.
Hogs traded limit down briefly on June liquidation as
late-day fund selling triggered sell stops.
Premium Standard Farms (PORK) debuted today in its IPO. The company is the
#6 pork producer in the US. It priced at $12.50, the low end of a revised range;
the initial range was $15-$17.