WSJ with an article on investors getting worried by OPEC overdoing its job
OPEC will meet again this week in Vienna, and will likely announce an agreement to extend its current supply cut of 2% in the oil market. By right, that should signal good news to oil investors and executives but it seems that not everyone is too keen with OPEC suddenly getting things in order in 2017.
"There's actually a chance the market will over-tighten and prices go close to $70 soon," said Doug King, chief investment officer of the Merchant Commodity hedge fund, which has $165 million under management.
The real danger that investors are worried about are if prices move too high all of a sudden, and that will start to depress the demand for crude oil. This is because it will also incentivise shale oil producers in the US to come back into the market - which was one of the major catalyst that sent oil prices down in the first place.
"I'm used to OPEC not doing enough," said Rainer Seele, chief executive of oil company OMV AG. "Now they are over-delivering."
You may find the full article here. May be gated.
