Let my oil flow!

OPEC reaches an agreement [Click to view in browser](. Good afternoon, It started with chest beating and ended with a shrug. OPEC+, the organization of oil producing countries (and friends), agreed to end all pandemic cuts by September 2022. Some background When lockdowns hit, travel and economies ground to a halt. Yet Russia and Saudi Arabia went toe to toe with each side refusing to cut production. That left global markets awash to the point that storage filled completely. This caused oil futures to crash as holders unloaded contracts at negative prices to avoid taking delivery of products that had nowhere to go. Eventually, the standoff ended and global production shrank by a historic 10 million barrels per day. Since then, we’ve been drawing down on enormous inventories. Drop the boom Today, crude oil, like many key commodities, runs in short supply. Economies reopened but supply chains failed to keep pace. Shortages drove oil prices up to $70 a barrel, prices not seen since before the pandemic. At the initial OPEC meeting, the United Arab Emirates (UAE) refused the presented terms. The tiny country with some of the largest reserves yet to drill wanted to bring more of its supply to market. Many members, including powerhouse Saudi Arabia, know they need to transition away from a petrol economy in the next few decades. The UAE thinks their only shot is to get the oil out of the ground and sold, even if it comes at lower prices. Shortfalls in the near-term The agreement reached amongst members adds 400,000 barrels of oil per day for each month through September of 2022. It also allows the UAE to increase its baseline. However, the International Energy Agency (IEA) expects a shortfall of 1.5 million barrels of oil per day including the supply increase. Gas prices have already soared during the summer holiday season. Yet, while Goldman Sachs said the agreement leaves the crude market in a deficit, rising delta variant cases can cause markets to ‘gyrate’ in the near term. Our hot take Oil stocks suffer from a long-term problem - they’re falling out of style. While they might make decent investments for a few years, over a decade or more, they need to transform. For more insights into the financial markets, check out some of the fantastic content from our publisher network below. Power Plays [5 Best Stocks for Animal Lovers Picked From ProShares PAWZ ETF]( In this article we discuss the 5 best stocks for animal lovers. If you want to read our methodology and a more extensive list of pets stocks, please visit 10 Best Stocks for Animal Lovers. [Read More]( [5 Best Dividend Kings to Buy Now According to Hedge Funds]( In this article, we will be looking at the 5 best dividend kings to buy now according to hedge funds. To see our detailed analysis of dividend investing, you can go directly to the 10 Best Dividend Kings to Buy Now According to Hedge Funds. [Read More]( [5 Best Safe Blue Chip Dividend Stocks]( In this article, we will be looking at the 5 best safe blue chip dividend stocks. If you want to see our detailed analysis of dividend investing, go directly to the 10 Best Safe Blue Chip Dividend Stocks. [Read More]( [Get In On This Green Energy Company Before The Herd]( Clean Energy Company Partners with High Profile Auto Racing Group to Fill Major Emerging Hydrogen Fueling Station Gap [Find Out More Here!]( Sponsored Economics [If Interest Rates Go Up, the Bubble Pops]( Keep watching interest rates and try to… [Read More]( [Here's Why America's Labor-Shortage Will Drive Inflation Higher]( Thank you, Ron G. ($50), for your magnificently generous contribution to this site -- I am greatly honored by your steadfast support and readership. [Read More]( [Q2 GDP Forecasts: Forecasts Down to around 8%]( From BofA: [Read More]( [Invest in digital currencies, with ease]( Access the world’s top digital currencies and build your crypto portfolio. Trade $1,000 and get a bonus $50 for a limited time. [Read More.]( Sponsored To ensure delivery of all emails, [whitelist us](. You are subscribed to email updates from [InvestingChannel](. To stop receiving these emails, you may [unsubscribe]( now. InvestingChannel, Inc., P.O. Box 118 New York, NY 10018. Disclaimer: This is not investment advice. This InvestingChannel, Inc. newsletter is for information purposes only and opinion-based. Futures, forex, stock, and options trading are not appropriate for all investors. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can ensure returns or against losses. No representation or implication is being made that using any of these methodologies or systems will generate returns or ensure against losses. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions. [Link](