Dow's early gain was reduced to 58 (closing at session lows, about 250 below AM highs), advancers barely ahead of decliners while amp; NAZ gave back 65 from profit taking. The MLP index fell 1+ to the 265s & the REIT index ;lost 3+ to the 356s. Junk bond funds fluctuated & Treasuries were sold (although finished above session lows). Oil dropped 1 to the 47s & gold fell 3 to 1275.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.007540918403267094)
Crude production from OPEC dropped again in Nov to a 6-month low. Total production fell 80K barrels a day to 32.47M a day last month, according to a survey & ship-tracking data, the lowest level since May, when output was 32.29M. Angola led the declines in Nov, with a drop of 100K barrels a day from Oct. The International Energy Agency, which tracks production from OPEC members, warned last month that field maintenance would probably affect production in the African nation. Loading programs for Nov show sharp dips in exports from the country's Saturno & Girassol grades, while both were set to recover in Dec. OPEC & some non-members including Russia decided last week to extend their deal to curb production until the end of next year, seeking to complete the market rebalancing by bringing down global oil inventories to the 5-year average. The 12 OPEC members who agreed to curb their supply implemented 118% of their pledged cuts in Nov, compared with 110% the month before. Nigeria & Libya are exempt from making cuts, although they will be included in the efforts to rein in production from Jan following last week's OPEC agreement. Output from Saudi Arabia, the biggest producer within OPEC, dropped 40K barrels a day to 9.97M a day over the month. Venezuela's crude production came in at 1.86M barrels a day, unchanged from a revised level. Output in the country, which has the largest crude reserves in the world, is in long-term decline as its state-owned oil company faces a cash crunch & $B of debt repayments. Last week, the newly-appointed oil minister & pres of Petroleos de Venezuela vowed that the oil company would continue to honor its foreign debt commitments. Output in Iraq, the 2nd-biggest producer within OPEC, recovered 40Kbarrels a day to 4.39M a day, as some disruptions were resolved in Kurdistan, a semi-autonomous region in the north. Last week, Iraq's minister said reduced exports from the north would be compensated by higher shipments from the south.
OPEC Crude Output Drops to Six-Month Low
Dem leaders in Congress said they had accepted an invitation from Pres Trump to meet with him & Rep leaders to discuss year-end legislative priorities, including efforts to fund the gov & avoid a shutdown. Nancy Pelosi & Chuck Schumer, who canceled a previous meeting with Trump after he issued a disparaging note on Twitter, said they hoped the pres would remain open-minded about reaching a deal with Dems. "We need to reach a budget agreement that equally boosts funds for our military and key priorities here at home," they said, listing a series of political priorities. "There is a bipartisan path forward on all of these items."
Ireland's prime minister says he was told that Britain & the EU had struck a deal to resolve a Brexit logjam over the Irish border, only for it to fall apart at the last minute. Leo Varadkar says he was told by EU chiefs today that the UK "had agreed a text on the border that met our terms." Ireland & the EU want Britain to give concrete promises that there will be no hard border in Ireland after Brexit. But after Northern Ireland's Democratic Unionist Party issued an uncompromising statement, British & EU leaders announced that they needed more time for negotiations. Varadkar says he is "surprised and disappointed that the British government appears not to be in a position to conclude what was agreed today." But he says he hopes a deal can be reached before a key EU summit later this month.
Nervousness returned to traders in the PM & stocks were sold. There is a lot to be nervous about. If those guys in DC don't pass a budget by Fri, part of the gov will be shut. Then there is the whopping question about the new tax bill. Additionally, the Fed is almost certain to raise interest rates later this month & most analysts expect 3 more rate rises next year compared with 2 when surveyed just weeks ago. However, the Dow is still up a massive 6K since the election & has set about 65 record days since then. The bulls continue to feel good.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
Crude production from OPEC dropped again in Nov to a 6-month low. Total production fell 80K barrels a day to 32.47M a day last month, according to a survey & ship-tracking data, the lowest level since May, when output was 32.29M. Angola led the declines in Nov, with a drop of 100K barrels a day from Oct. The International Energy Agency, which tracks production from OPEC members, warned last month that field maintenance would probably affect production in the African nation. Loading programs for Nov show sharp dips in exports from the country's Saturno & Girassol grades, while both were set to recover in Dec. OPEC & some non-members including Russia decided last week to extend their deal to curb production until the end of next year, seeking to complete the market rebalancing by bringing down global oil inventories to the 5-year average. The 12 OPEC members who agreed to curb their supply implemented 118% of their pledged cuts in Nov, compared with 110% the month before. Nigeria & Libya are exempt from making cuts, although they will be included in the efforts to rein in production from Jan following last week's OPEC agreement. Output from Saudi Arabia, the biggest producer within OPEC, dropped 40K barrels a day to 9.97M a day over the month. Venezuela's crude production came in at 1.86M barrels a day, unchanged from a revised level. Output in the country, which has the largest crude reserves in the world, is in long-term decline as its state-owned oil company faces a cash crunch & $B of debt repayments. Last week, the newly-appointed oil minister & pres of Petroleos de Venezuela vowed that the oil company would continue to honor its foreign debt commitments. Output in Iraq, the 2nd-biggest producer within OPEC, recovered 40Kbarrels a day to 4.39M a day, as some disruptions were resolved in Kurdistan, a semi-autonomous region in the north. Last week, Iraq's minister said reduced exports from the north would be compensated by higher shipments from the south.
OPEC Crude Output Drops to Six-Month Low
Dem leaders in Congress said they had accepted an invitation from Pres Trump to meet with him & Rep leaders to discuss year-end legislative priorities, including efforts to fund the gov & avoid a shutdown. Nancy Pelosi & Chuck Schumer, who canceled a previous meeting with Trump after he issued a disparaging note on Twitter, said they hoped the pres would remain open-minded about reaching a deal with Dems. "We need to reach a budget agreement that equally boosts funds for our military and key priorities here at home," they said, listing a series of political priorities. "There is a bipartisan path forward on all of these items."
Top Democrats in Congress accept Trump offer to meet on year-end priorities
Ireland's prime minister says he was told that Britain & the EU had struck a deal to resolve a Brexit logjam over the Irish border, only for it to fall apart at the last minute. Leo Varadkar says he was told by EU chiefs today that the UK "had agreed a text on the border that met our terms." Ireland & the EU want Britain to give concrete promises that there will be no hard border in Ireland after Brexit. But after Northern Ireland's Democratic Unionist Party issued an uncompromising statement, British & EU leaders announced that they needed more time for negotiations. Varadkar says he is "surprised and disappointed that the British government appears not to be in a position to conclude what was agreed today." But he says he hopes a deal can be reached before a key EU summit later this month.
The Latest: Irish say Brexit deal fell apart at last minute
Nervousness returned to traders in the PM & stocks were sold. There is a lot to be nervous about. If those guys in DC don't pass a budget by Fri, part of the gov will be shut. Then there is the whopping question about the new tax bill. Additionally, the Fed is almost certain to raise interest rates later this month & most analysts expect 3 more rate rises next year compared with 2 when surveyed just weeks ago. However, the Dow is still up a massive 6K since the election & has set about 65 record days since then. The bulls continue to feel good.
Dow Jones Industrials
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