Is OPEC’s deal credible and sustainable?

Is OPEC's deal credible and sustainable? By Filipe R Costa As readers are no doubt aware, OPEC recently agreed a production cut from its August output of 33.2 mb/d (million barrels per day) to a new target of between 32.5 mb/d to 33.0 mb/d. With OECD oil inventories expected at 3,090 million barrels by the end of this year, the agreed production cut is unlikely to have any real impact in the market. For now, investors seem enthusiastic about the "promised" cut, but as life moves on from the Wall Street reaction to the very real challenges facing Main Street, such enthusiasm may just peter out. I must admit that I'm really not enthusiastic about oil and/or the sector in general for the coming years. While there are certainly some gems, the sector will most likely experience a long period of difficulties, as a whole. Oil prices are no longer the result of OPEC's actions but rather a complex determination that is partially floored by OPEC's desires but, at the same time, capped by an entire army of shale oil companies anxiously waiting for their opportunity to shine. Last Wednesday's agreement is not even the final deal but just the purchase of an option on oil prices that can be exercised at the end of November. Until then, any oil price moves are just the result of fancy Wall Street reactions to immaterial action… Click Here To Read The Full Story The Master Investor Market Report The FTSE 100 closed the day at 6,983.52, an increase of 84.19 points. The FTSE 250 rose 312.10 points to finish at 18,183.52. The FTSE All Share climbed 49.24 points to finish at 3,804.58. The FTSE AIM All Share ended the day at 824.42, up by 5.32 points. Institutional stockbroker Numis Corporation (NUM) said that revenues from core activities for the year ended 30th September exceeded £100 million for the first time. The company took part in 46 equity deals over the period and funds raised were just below £1.9 billion, with business activity continuing well despite uncertainty following the Brexit vote. Full results for the year will be published in December. The shares rose by 4.50p to 223.50p. Don't miss our September issue! Click HERE to read. Product testing group Intertek (ITRK) has bought a Canadian electronic warfare specialist for an undisclosed consideration. Management said that the deal strengthened its offering to customers and was in line with its strategy of targeting fast-growing businesses with strong margin prospects. The shares grew by 53p to 3,542p. AIM-listed flooring specialist Victoria (VCP) saw its shares climb 4.28% to 341p after it announced the acquisition of underlay manufacturer Ezi for an initial cash consideration of £6.5 million with the same amount due to be paid out in installments over the next four years. There may be additional performance-related payments which would also be payable if certain EBITDA growth targets are met.  Tomorrow's news today Greggs (GRG) will publish a trading announcement. Quote of the day "Nothing is as obnoxious as other people's luck." - F. Scott Fitzgerald Latest Stories Ibstock: Government schemes build to 200p target By Zak Mir It is rare that as a technical analyst the cue for looking at a stock is quite so directly fundamentals based, but, in the case of Ibstock, the latest Government initiatives on the housing front make it an appropriate thing to do... Click Here To Read The Full Story Wait another fortnight on Mitie By Evil Knievil Philip Hammond is giving the market a boost today. Clearly, someone in HM Treasury reckons the gilts market will stand it.… Click Here To Read The Full Story Sovereign Mines of Africa (SMA): Bull flag points towards 1.2p By Zak Mir Focusing on the overall chart pattern can very often be the best way forward with regard to volatile small caps such as Sovereign Mines of Africa… Click Here To Read The Full Story Cloudtag: Technical target as high as 30p By Zak Mir If only we could all discipline ourselves to only picking on companies with charts like Cloudtag… Cloudtag has the current honour of being the most followed/trending and just plain loved small cap on the London stock market at the moment… Click Here To Read The Full Story October has got October written all over it By Evil Knievil I went short Canadian dollars yesterday and, this morning, shorted Japanese yen at 100.78 (i.e. bought it versus USD) on the basis of a Goldman Sachs note. It is astonishing that JPY have held up so long… Click Here To Read The Full Story Join the movement on social media: Copyright 2016 Master Investor Ltd, All rights reserved. You are receiving this email because you opted in at our website. If a Daily Bulletin is too frequent, why not opt in to our once weekly mailing list for a round up of the week's news straight to your inbox. Once Weekly Round-Up Our mailing address is: Suite 88, 22 Notting Hill Gate, London W11 3JE Master Investor is a trading name of Master Investor Limited. Material contained within Master Investor Magazine and its website is for general information purposes only and is not intended to be relied upon by individual readers in making (or refraining from making) any specific investment decisions. Master Investor Ltd does not accept any liability for any losses suffered by any user as a result of any such decision.

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