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Oil Pro: The OPEC Meeting Is A 'Complete Farce'

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Oil Pro: The OPEC Meeting Is A 'Complete Farce'

OPEC members are meeting in Algiers to discuss a potential agreement to freeze oil output. Few experts are predicting that much will come out of the meeting, but one oil analyst went so far as to describe the meetings as a "complete farce."

Michael Cohen, Barclays Head of Energy Commodities Research, was a guest on CNBC Wednesday. He acknowledged the "stars are more aligned now" than ever before to reach an agreement part of this is due to the fact that Iran has had plenty of time to advance its efforts to recapture lost market share.

He said the current meeting was always intended to be "consultative" as the meetings are occurring on the sidelines of the International Energy Forum, which is a meeting of both producers and consumers.

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"As we come into the end of the year we expect that the overall oil market balance is going tighten and we think that is what you need to pay attention to, rather than what they say just because they have such a poor track record," Cohen said.

Complete Farce

John Kilduff is a partner at Again Capital, an alternative investment manager specializing in commodities. When asked for his take, he simply said the OPEC meeting is a "complete farce" and most OPEC members will adapt a strategy of pumping "your full head off and put as much oil as you can on the market."

Kilduff said what is "clear" is that Saudi Arabia is "feeling the heat" and its oil strategy of flooding the market with oil and "weight everyone out" has "backfired." As such, Iran now has the "upper hand" in any negotiation.

Bottom line, Kilduff continues to expect the oil market to be "swamped" and "overwhelmed by more and more production - not less."

Posted-In: Again Capital Barclays CNBCNews Commodities Events Markets Media Best of Benzinga

 

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