WTI Tumbles Below $50 - Biggest Monthly Plunge Since 2008
Oil tanked back below $50 this morning and is headed for its biggest monthly decline in 10 years - less than a month after Goldman herded its clients into the collapsing assets, predicting Brent would hit $80 by the end of the year - as Russia reiterated it’s comfortable with current prices, just a week before it meets with OPEC to discuss possible production curbs.
“As things stand, the Russians and Saudis are still far from being on the same page over the finer details of looming output restrictions,” Stephen Brennock, an analyst at PVM Oil Associates in London, wrote in a report.
“Against this backdrop, the most likely outcome of next week’s OPEC meeting is a fudge.”
Crude's next leg hinges on Saudi Arabia’s dilemma of busting the budget or angering Trump, but as prices plunge, China is grabbing every barrel it can get.
November is now the 2nd worst month for WTI since Jan 1991...
Meanwhile, all eyes are on energy junk bonds: as Goldman wrote overnight, "WTI below $50/bbl will unquestionably constrain risk appetite in the HY market"