Wrap – Week Ended 06/02/23



Volatile week as focus shifted from the debt ceiling to the June Fed meeting and this weekend's OPEC+ meet and greet.  The ZLT ended the week up 2.9% on the week with our oily and gassy upstream, oil services, and solar segment names outpacing their benchmarks.

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15 Responses to “Wrap – Week Ended 06/02/23”

  1. 1
    zman Says:

    Opec-Plus: Cuts Talks Come to the Fore


  2. 2
    zman Says:

    Talks still going, have not seen a press conference time yet.

  3. 3
    zman Says:


  4. 4
    zman Says:

    Saudi making additional voluntary cuts.

  5. 5
    zman Says:

    Some African countries, including Nigeria, appear to agree to lower baselines. This has been a sticking point overnight.

  6. 6
    zman Says:

    OPEC+ press conference link:


  7. 7
    zman Says:

    re 6 – about to begin.

  8. 8
    zman Says:

    OPEC+ meeting comments:

    Saudi to further voluntarily cut 1 mm bopd starting in July for a month and is extendable.

    Rest of the 9 countries with voluntary cuts are extended through end of 2024.

  9. 9
    zman Says:

    Baseline reduced 1.4 mm bopd.

    Speaking to ensuring transparency.

    Putting roadmap in place for 2025.

  10. 10
    zman Says:


  11. 11
    zman Says:

    Press conference over:

    35th OPEC/NonOPEC Meeting – June 4th, 2023
    1) All 9 countries that announced voluntary cuts in April 2023 agree to extend them through end 2024.
    2) Saudi announces additional 1 mm bopd cut for the month of July. This may be extended as well. The “Saudi Lollipop”
    3) OPEC+ production target is reduced by 1.4 mm bopd via baseline revisions. For 2024:
    A) OPEC 10 production to be set at 24.994 mm bopd
    A1) OPEC 10 production was 24.116 mm bopd in April (secondary sources)
    B) Non-OPEC production level of 15.469
    C) OPEC+ production levelto be 40.463 mm bopd
    4) OPEC will be looking into Russia’s production numbers
    5) OPEC+ to continue to meet every 6 months with JMMC continuing to meet every 2 months.
    6) Focus on transparency as verified by secondary sources.
    7) Setting up road map for how 2025 will be structured.
    8) Next meeting November 26th.

  12. 12
    Nick Says:

    Monday morning will be a good time to sell some covered calls

  13. 13
    nrgyman Says:

    The Saudi oil minister is going after the oil shorts. The July additional voluntary cut that can be extended is directed at them and fulfills his promise to “watch out”. Saudis want/need higher prices and they see spec shorts as most of the problem for lower prices rather than actual demand weakness. They are also apparently not thrilled with Russia’s production exceeding promised levels.

  14. 14
    zman Says:

    re 13 – he spoke to this during the press conference. He said it needs to be taken in context with everything else he said at the time. He said the extra 1 mm bopd for one month is precautionary.

  15. 15
    Nick Says:

    If I’m Saudi Arabia, I’m funding Russian insurrection and Ukrainian forces to sabotage Russian oil infrastructure

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