Opening Statement from the August 2021 CCPM Forecaster

Opening Statement from the August 2021 CCPM Forecaster

Originally published on August 1, 2021 (pre-market release)

Oil & Gas

On July 18, crude oil pricing collapsed after OPEC+ members agreed to boost output by 400,000 barrels per day on a monthly basis starting in August through 2022. Although the hike in output was largely expected in the prior month, traders gradually began to bet on delays in near-term output hikes due to the recent surge in Delta variant (coronavirus) infections, adding to the possibility of a slowing economy.

Although we warned that such an announcement would be an exception to our July recommendation to buy in after selloffs (i.e. to treat downside as retracements) we...