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CO2 in the dock

Published Tuesday, December 1st, 2015

While the UK parliament agonises about bombing Syria and will vote tomorrow, world leaders agonise about climate change at COP21 in Paris. This is not a conference, they have already decided that the climate is changing for the worse, that the cause is man-made and that CO2 emissions are the culprit. Fossil fuels are the major source of CO2 and have been found guilty. The “conference” is effectively all about deciding the sentence to be passed on fossil fuels. It will be death by a thousand cuts but how rapidly will it be implemented?

Meanwhile OPEC continues to put two fingers up and produce more fossil fuels. The latest Reuters survey puts OPEC November production at 31.77 mbpd, 130,000 bpd higher than in October with Saudi Arabia marginally up at 10.25 mbpd and Iraq at 4.1 mbpd. Speculators on the other hand are putting two fingers up to oil, or more accurately to WTI. Net long positons fell by an enormous 39,158 lots last week taking them down to 67,954, the lowest level since July 2010. Short positions at 215,456 lots are the highest this year and have risen by 89,448 since the week ending October 13. Brent NSL in contrast rose by 19,208 to 177,945.

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Posted by David Hufton