Last week, the group of oil producing nations that make up the Organization of the Petroleum Exporting Countries (OPEC) cartel agreed to extend production cuts through the end of 2018. The production limits are an effort to increase the price of oil and generate badly needed revenue for the OPEC nations.According to Bloomberg, the meeting of OPEC nations was a success. The news service noted that the growing global economy and production cuts have helped push up oil prices. But the problem now is how to keep prices high without stimulating further growth in US shale oil production.Many analysts believe shale production will increase when oil tops $60 a barrel since that is the level where the wells are profitable. These analysts also believe there are a number of well heads ready to be turned on whenever prices are highOr as an oil analyst with the Boston Consulting Group, said, “For now, the OPEC-Russia bromance continues.”
In an iron condor, the difference between the exercise prices of the two call options will be equal to the difference between the exercise prices of the two put options. The final requirement for this strategy is that all of the options must have the same expiration date.