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Pisani: Lots Of 'Skepticism' Surrounding OPEC Agreement

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Pisani: Lots Of 'Skepticism' Surrounding OPEC Agreement

According to CNBC's Bob Pisani, there is a lot of "skepticism" surrounding OPEC's agreement.

Pisani noted that many energy names that moved higher on Wednesday, such as Exxon Mobil Corporation (NYSE: XOM) and Chevron Corporation (NYSE: CVX) are trading in the red on Thursday. He noted several Wall Street analysts expressed cautious views that any OPEC agreement that would result in higher prices.

Related Link: Oil Stocks Gushing Higher On News Of OPEC Output Limit Deal

Specifically, analysts at Goldman Sachs said they're skeptical on the implementation of an OPEC agreement and aren't making any changes to their $43 oil price target as did analysts at Ladenburg who maintained a similar $43 price target.

Analysts at Macquarie advised oil investors to sell into the rally because they believe any OPEC agreement will marginally change the group's oil output from 33.2 million barrels per day produced to 33.0 million barrels per day.

Pisani suggested OPEC is trying to re-establish its "relevancy" and could help establish a floor price of oil at around $40 per barrel, which helps oil producers better manage their costs knowing that the price of a barrel won't dip below $40.

He also added that a floor price of $40 per barrel of oil could accelerate a drilling recover in North America.

Posted-In: Bob Pisani CNBC CNBC oil price OPECCommodities Markets Media Best of Benzinga

 

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