07 Oct The ‘ol OPEC 2-Step
A few of you sent me notice yesterday that OPEC+ is cutting exports by at least 2MMBOPD. By a few, I mean about 20 of you! I’m on it!
The big question is, how does this affect the market for direct participant in oil and gas ventures?
The answer is…not much
Yes, oil will go up in price…and I would assume a price of $100 per barrel for WTI in Q4 at least for a few days and don’t see them coming down much.
The current administration cannot raid the reserve any more as it now looks like pure political pandering. It’s too obvious of a play and could spell more defeat for those in power currently for November elections. And forget easing of development or refining restrictions…that would upset the voting base. Proverbial “rock and a hard place” for the administration.
Domestic labor and supplies are still in high demand and short supply, so US domestic producers simply cannot flood the market with new production.
The good news? If you have oil production, your gain should be about 8-10% more than I expected from a month ago. Also, it shouldn’t affect ongoing fundraises or field scheduling. Short supplies won’t move development prices for now, as they have been an accepted reality for the past 18 months.
Still a good time to purchase…so check out the website.
Some of you made too much $$ and need to find a way to mitigate taxes. One path may be a 1031 Exchange for those with real estate profits. Ask your tax/finance professionals for more info. Need more information on tax advantages? Check out my Investor Center page for some additional insight.
Need deals? I have them (or can find them).