Mar 17, 2017|
Jackie DeAngelis (CNBC, Oil Update) by The Financial Exchange
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Very chuck rough. John will be along with Michael Armstrong in this segment of the financial exchange brought you in part by leader break. It's not too late to get a great rate of home mortgage leader bank has some of the most competitive rates around. Call 8776917900. Or visit leader bank dot com for more information. Jackie the Angeles from CNBC joins us right now Jacqui thanks for joining us. I'm Michael good morning. Talk about oil and Jackie you know it seems that OPEC wants oil to go higher but oil fields not going much higher what's going on here. Right into an L oh act. And looking at a market I think that out of the oh I ate many OPEC meeting. I decided at the end of lap here what can implement a little bit over a million barrels a day one Courtney and and not OPEC app that you are including the last and the kind of be delighted that mark right all the dirty air. Agreed that they want to be able they. Though it out and implement the we got. Up in the green would it be that it back dollars a barrel. About the when he picked dollar that's when they all were really hurting the ticket. Was pretty. Most readers will analyst on Wall Street not that we are gonna eat. We Allen occurring at a bit of an even go higher. Than a year about a possible. A lot right now I'm a crack. Down. We had happened at the O well ID act at the cutting mark Elliott well. Let production aptly and keeping our eye on the hill producer here who are not part of a coordinated accurate. They were thinking it can't. Higher I bet on oil oh yeah over nine million barrels a day. You mean I got concerned. That are being that OPEC. Jackie this fascinating and I think that explains it in and supports this theory and that is that. We're seeing the free market at work here and I think what we have is what used to be a great market. With free market characteristics. That's trends transitioned into a free market with some rigged characteristics in do you believe that in. If if that is true. Are we involved now in price discovery. Trying to decide what is the collective rice. Where the world can make a little bit of money on oil. Like though it's been very interesting dynamic. For years and years of the earth and really let in sum it all the act of loyalty yet a lot higher in there and it. What he team would you let the lacking. I think we would hear scale production. That nobody in the decade ago even really opt. Out at Edmonton before you let the art or it effort op we don't do that we don't I. So we're reading at a pre market were looking at a higher priced at. And it really at the beach oh what the content here you know their it will be a what the air right right right we're in acute here and make money without all right out in worse. A lot of I volatility that not at eight. We'll let you know political that we don't know apparently in the market it right back. On and it's a little while they out the back at it at that point that you made that back. That dynamic at a really set it here and attic because of what's happening. In that didn't happen. It. There's no question about that that we look at Saudi be able to produce oil at lower cost than most other countries. And we look at the fact that technology is bringing down that breakeven point price in the United States pretty dramatically can guesstimate as to what you think the sort of global breakeven price is collectively on a barrel of oil. So hard and I their company or opt out but what you lack you. Don't forget there's certainly a copy break even now they buried a company iron blow out in the air you. He did well I get naked will be op the ball and I think in less than it search. And the Canadian while they shop he won't that they use technology. To be able to do that nobody acted everybody thought Ellis in crack. When I got a tweet that says you're expected and and and I itself pretty. The problem apple will owe it to their letter read Eden is that while the he Arabia in May only caught by the hour and yet oil out of the ground remember that. Oil they economy and see it or I is living out the oil. Their social and bring apparently even. They'll sit at the eighty dollar level and they need it at tailback and buy it and that. And pulling those break even down but certainly nowhere near what it caught it oil. How big a factor is the aramco public offering going to be obviously they wanna make as much money as they can't but they also don't want to lose market share right. Apple you actor right now and that's why Audi and Barry that's. Been oil I think. The Puerto app I think eight actor's alleged that they they were able burst through the cut but in the larger are all of a market here that certainly light a conversation as well he can't need. You know the mid point of the year and continue to adapt that it thinks cool in some ways. Until the or is it look like they're just sitting stairway to help with it or not but they were worried about. There's a lot. And quite a pop and I hope out. It that off line blocked and people are split on how exactly they're gonna go out there. Elect a report out earlier this week at Iran like Yelp maybe they'll eat. Maybe because the bat look I stopped coming and that's certainly a lot timeline are we were acting. Early when he lean on that bank may be back at me. It's very tough for them to say we wanna two trillion dollar valuation by far the largest valued company in the world. While we are now number two of the United States and oil. Might I mean the thought that I act. Heatley and you know I know they're very. Keeping those number I in May. That they're at the local market they could get the I'm and buried in the free air they own oil company. Shouldn't think that they've ever done that or something really that are. And people think it's fair ball. We're in the global marketplace. Others I know what I will let go they're gonna opt out it means you are next up in value and make the ball off. Skiddie something to keep an eye on the next twelve months no question about that Jack and Jackie G Angeles from CNBC's thank you very much that very valuable input in the the little or have a great Lille 101 lesson we appreciate Jacqui gently into us from CNBC.