OPEC will not cut production

OPEC elected to not to cut production from the quota of 30 million barrels a day at the meeting in Vienna. Here are a few charts that have impact on or will get impacted from this decision:

USD XLE_C

Here is the impact on Oil prices today:

CL_F_B

It is not likely to hold the $70 level.

One more thing to add here is the VERY large bet made on the $XLE ETF using the December 05 weekly Options:

XLE_Dec05w_Options

That isn’t a clerical error – that is just over 120K contracts at the $83 Put strike. That’s what I call a BIG footprint.

 

-DM 10:30 AM CST