Weekly commodity wrap-up

In complete control or complete loss of control?

OPEC+ members met this week and agreed to an additional 1 million barrels per day in production cuts for 2024. This goes along with an extension of Saudi Arabia’s voluntary production cut of the same amount into 2024, as well.

The meeting of OPEC+ nations was originally scheduled for Sunday and pushed back to Thursday as reports indicated some member nations might not have been in complete agreement with the proposed cuts.

Attached heads prevailed and production cuts were agreed upon with an announcement Thursday morning that initially saw crude oil futures spike $2 plus putting in a high of $79.60 for the day in January crude oil futures. The rally did not hold for long as January crude oil futures finished down $1.90 on the day at $75.96 leaving one to wonder if heads will roll as OPEC’s unified front might have a crack in it.

Elon Musk was on CNBC this week and his first appearance garnered a lot of attention as he did not mince words telling big corporate advertisers that they were welcome to have sex with themselves if they thought he could be blackmailed with pulled advertising and lost sponsorship dollars as a response to a perceived anti-Semitic remark he made on twitter.

Mr. Musk had recently returned from a trip to Israel where he spent time with President Benjamin Netanyahu that some claimed was an apology tour, but Musk claimed had already been planned. In any case Musk had a revealing, frank interview where he was clearly not begging advertisers for forgiveness.

The very next day Elon Musk presided over a press conference to reveal details about Tesla’s new Cyber Truck with commercial production finally hitting the market. The press conference was broadcast live on CNBC.

Tesla stock is up 116% for the year at roughly $234 per share as of Friday morning.

X (Twitter) was delisted from the New York Stock Exchange after Musk acquired it and went private with the company, but it was estimated to be worth $19 billion in October according to Bloomberg. Musk originally paid $44 billion for his acquisition of Twitter in October of 2022.

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Opinions are solely the writers. Derrick Hermesch is a commodity futures broker with Paragon Investments LLC. He can be reached at 785-338-9605. This is not a solicitation of any order to buy or sell nor does it provide any recommendations in regard to the market. Information contained herein is believed to be reliable but cannot be guaranteed as to its accuracy or completeness. Past performance is no guarantee of future results or profitability. Futures and options trading involve substantial risk of loss and is not suitable for all investors.