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Last Update: 21-Sep-18 11:05 ET
Looking Ahead - September 24, 2018 - OPEC/Non-OPEC Meeting (USO)
Market participants will be keeping a close eye on the meeting in Algiers over the weekend between OPEC and certain non-OPEC countries. Decisions made at that meeting -- or not made -- are certain to have a bearing on oil prices come Monday.
OPEC/Non-OPEC Meeting (Algiers, Algeria, September 23)
- Why it's important
- With their production output, OPEC and certain non-OPEC nations, like Russia, have the ability to influence oil prices, the direction of which is highly relevant for businesses and consumers around the world.
- Oil prices have been moving up ahead of the meeting amid growing concerns that the OPEC/non-OPEC alliance isn't going to make up for diminished supplies of oil out of Iran when U.S. sanctions on its oil industry take effect in early November.
- Market participants are anxious to see if the alliance runs the risk of crossing President Trump with a production policy that is seen as insufficient to curtail rising oil prices.
- President Trump recently tweeted that, "The OPEC monopoly must get prices down now!"
- There were press reports earlier in the week suggesting Saudi Arabia would be okay for now with $80 oil.
- The direction of oil prices factors into earnings expectations for the S&P 500 energy sector.
- Oil prices also factor into inflation forecasts, which in turn factor into monetary policy considerations for central banks.
- A closer look
- What's in play?
- Integrated oil companies
- ExxonMobil (XOM)
- Royal Dutch Shell (RDS.A)
- BP (BP)
- Chevron (CVX)
- CNOOC (CEO)
- Petrobras (PBR)
- Total (TOT)
- Sector ETFs
- Energy Select Sector SPDR (XLE)
- iShares US Energy ETF (IYE)
- iShares Global Energy ETF (IXC)
- Vanguard Energy ETF (VDE)
- Market Vectors Oil Services ETF (OIH)
- United States Oil ETF (USO)
- Index/Country ETFs
- VanEck Vectors Russia ETF (RSX)
- SPDR S&P 500 ETF (SPY)
- iShares MSCI Brazil Capped ETF (EWZ)
- Integrated oil companies
