27 November 2017
Bassanese Bites: Steady as She Goes – Week beginning: 27 November 2017
One major market move of note was a further lift in oil prices, reflecting US supply disruptions due to a shutdown of a Canada’s Keystone pipeline, following a spill – its second in two years. Despite the pipeline’s stained record (excuse the pun!), regulators only recently approved plans for a second controversial pipeline, that had once been rejected by US President Obama but eagerly accepted by President Trump. As it turns out, however, analysts are now questioning whether the second pipeline will ever be built – as the projects looks increasingly uneconomic at a sub-$US80 oil price. Meanwhile, hopes are high among oil bulls that OPEC will agree to a production cut extension at its November 30 meeting, though this now seems largely priced into the market – while US production and exports are quietly ramping up to fill any gaps in the global market.
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