Energy markets are now awaiting the outcome of the meeting of the Organization of the Petroleum Exporting Countries (OPEC), which begins Wednesday, June 8, in Vienna, at its first meeting in six months.
We do not think this will soften, let alone push down, crude oil prices or energy in general. Instead, this could be the strong signal as some big trading houses, such as Goldman Sachs, Morgan Stanley, J.P. Morgan and Deutsche Bank, have in concert foreseen the energy uprising for the 2nd half of 2011. We are convinced that most OPEC members remain in a cautious price-defensive mode, and are likely to be attracted by the more headline-friendly quota adjustment rather than by the explicit signaling of a change in actual output. That said global market will not see so high expectation that oil will go around the bottom of 2010. And, look how crude oil prices disregard overall US market downturn which said to have been in red for the longest week since 2004. Have you stand-by-ed with your energy stocks? Coal is so much tempting for Indo equity universe context. [image: OPEC Meeting (June 8).png] '+'
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