Market Overview

Gadfly's Liam Denning: Disney Movies Are More Exciting Than OPEC Meetings

Gadfly's Liam Denning: Disney Movies Are More Exciting Than OPEC Meetings

Investors across the world are going to be paying particularly close attention to OPEC's May 25 meeting for further signs members and non-members will expand an agreement to cut supplies through the bottom half of 2017.

But investors should perhaps not stress themselves looking for the latest updates as the writing is already on the wall.

According to Gadfly's Liam Denning, Walt Disney Co (NYSE: DIS)'s movies are more suspenseful than the upcoming OPEC meeting since OPEC has no choice but to maintain its agreement to lower oil supply for several obvious reasons.

First, the U.S. Energy Information Administration released last week its updated estimates for oil supply and demand in February. The number showed that supply of oil rose 193,000 barrels a day, up from the initial estimate of 180,000 barrels a day of supply. Adding fuel to the fire, Baker Hughes weekly rig-count data showed that the number of rigs drilling for oil in the United States rose for the 15th consecutive weeks.

In other words, production of oil in the United States is clearly rising. But while this is happening, demand for oil is falling, as evidence by a reduction of 218,000 barrels of gasoline a day consumed throughout February compared to the same month a year ago.

Bottom line, OPEC has little choice but to expand its agreement, but at the same time, the effects are uncertain since Libya, an OPEC member that is exempt from the agreement, is now producing more than 700,000 barrels a day of oil. In fact, Libya could be on track to match its 1.6 million barrels a day output prior to the civil war starting.

Related Links:

Don't Expect Oil To Trade North Of $60 In 2017

OPEC Oil May Be No Match For American Ingenuity
Image Credit: Snow White 1937, Public Domain, via Wikimedia Commons

Posted-In: News Emerging Markets Commodities Previews Events Global Top Stories Economics Best of Benzinga


Related Articles (USO + DIS)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at