opec oil grew 7 million barrels a day in five years. grows 7 million barrels now, there's not going to be enough oil to satisfy. jon: iran, will the saudi's make space for iran considering where opec production target is? gary: they have to make space for iran. i think the market will make space. the market is growing 1.5 million to 2 million barrels a day year on year. their capacity was 3.7, 3.8 five years ago. if you look at their drilling statistics, drilling statistics have come down quite a bit. we think their capacity has probably dropped to 3.5 million barrels a day. they can get 300 to 500 a day in six months time. jon: too much made of that as far as you are concerned? gary: two thirds of it is this high, very terrible stuff, which is the condensate. they have this condensate which is very corrosive, and smells like rotten eggs. they have to sell at a dramatic discount and people don't want it. most of their floating storage is condensate. i'm not worried about that. when they start up, you may get some flush in production fro

a new agreement could see it ramp up crude production at a time when prices are sliding but opec has decided it is not ready to cut production. venezuela, saudi arabia, and canada have the biggest reserves. iran is in fourth position as far as the largest depositors in the world go. russia is a couple places back but is key to the eu. it supplies almost one third of its oil. european officials have been trying to wean itself off of it for years. iran could help and this could give you an idea of the potential. russia's reserves are much lower than iran's, but it does produce much, much more. last year, 534 million tons. in comparison, i ran only produced 169 million tons. as you can see huge room for improvement. but that is making for a tense talks in moscow between the oil cartel and vladimir putin. >> oil exporting countries are meeting to fix a common problem. the price of oil is already in the dumps, and iran wants to join in the game, but the secretary of opec general says he thinks prices -- secretary-general of opec says he thinks prices will stabilize going forward. >> in 20

a new agreement could see it ramp up crude production at a time when prices are sliding, but opec has decided it is not ready to cut production. venezuela, saudi arabia, and canada have the biggest reserves. iran is in fourth position as far as the largest depositors in the world go. russia is a couple places back, but is key to the eu. it supplies almost one third of its oil. european officials have been trying to wean itself off of it for years. iran could help, and this could give you an idea of the potential. russia's reserves are much lower than iran's, but it does produce much, much more. last year, 534 million tons. in comparison, i ran only produced 169 million tons. as you can see, huge room for improvement. but that is making for a tense talks in moscow between the oil cartel and vladimir putin. >> oil exporting countries are meeting to fix a common problem. the price of oil is already in the dumps, and iran wants to join in the game, but the secretary of opec general says he thinks prices -- secretary-general of opec says he thinks prices will stabilize going forward. >> in

we have opec playing itself out. which, we have never seen anything like a price war with opec. like they are digging in their heels, so this could be prolonged. alix, you say a lot of this depends on what non-opec members do? alix: we have not seen brazil cutback. that is what the iea is betting on. alix steel, our resident commodities expert, thank you so much, gianna, joining us from chicago. what can the price of sushi tell us about the overall economy? that is coming up. ♪ is the bloomberg market day. i am scarlet fu. down theing day up and east coast. it looks ok, but when you go outside you just get hit in the face with humidity and heat. let's go to julie hyman for a look at the big market stories. what is hot in markets? into: it is perfect to go the weekend, to get hit in the face. there is not a lot hot in the markets. we saw a so-so session. more or less -- the dow is less. take a look at my bloomberg terminal, the different sectors here. pretty even green and red today. resenting this little slice, the biggest drag. utilities are up the most in today's -- presenting

saidet: i noticed that you production outside of opec countries. what about opec production?ticking to the plan of defending market share and increasing output? alix: absolutely. you can see what opec wanted. and i should mean saudi arabia. non-opec has very high cost producing oil and they wanted to knock them right out of this mess. -- out of business. make roomt going to for iranian production, saudi arabia is not going to cut back thereon intoove the market. they going to have to fight for market share. scarlet: that is why we are not entering these iran nuclear talks so closely. thank you for giving us some insight. in about 15 minutes to take us through the market close. , including acome conversation with the president of the boston fed. ♪ scarlet: many of the world's most financially powerful players are joining the rocky mountains senate in colorado. we want to get eric rosengren's perspective on janet yellen's latest comments today. she expects to raise interest rates today. in the subsequent pace of increases will be gradual. congress takes it to mean she will hold

almost double what opec produces. stopa says that will growing. mexico will have negative supply growth as well as norway in china. more pressure on saudi arabia and saudi arabia is getting maxed out. huge issue for 2016. i will take the overage and say it will rise again next year. to talk about greece and deep dive into the terminal to look at the greek etf's. the market has not been trading but there is an etf, trades in the u.s. that track rake stocks. anyone who is trading this is the same gambler who wants to have big moves. after the referendum we saw this huge crash on the day after the referendum but it has made an extraordinary come back and regained 80% of its losses. despite the fact there has been no underlying trading in athens. one fun proxy of looking at greece. alix: i want to talk more about greece. our guestned by -- begin the term grexit. joe: this is like having a legit celebrity. it is unfortunate it is a much in the news. we will not have the final resolution this week. we are just about to see another deal being struck whic

we keep seeing production all over the world, and they highlighted opec.rsupply we're seeing right now, 800,000 barrels a day, is due to opec. scarlet: that stubborn saudi arabia. alix: this is the first time i heard this stat. the industry has cut 1100 rigs capex. billion in this year alone. they made the point that capex outside the u.s. is still growing, which is fascinating to me. to see if thatg non-opec supply falls. scarlet: all about protecting market share. alix steel will be back for the market close. let's go to our top stories. videoreleased dash cam showing the arrest of a black woman in a controversial texas case. sandra the land was pulled over outside of houston because she did not use her blinker when changing lanes. the trooper used a stun gun on her when she refused to get out of her car. she was arrested and was found dead a few days later. officials say she hanged herself, but family members dispute that. sands casino is in court over plans to restructure $20 billion in debt. caesars still does not have support from the creditors it ne

what do we know about what is going on with opec?d that they produce the most oil since ever, even the 1980's. alix: this is saudi arabia, so it's pretty staggering. 10.5 million barrels of oil per day. that is a ton of oil. that is the most it has ever produced. supposedly the reason why saudi arabia is actually doing that is because of the demand for 2016. that means that currently opec is still overproducing by anywhere between one million barrels in 2 million barrels per day. last week saudi arabia cut the official price. this was big news for the market . oil is not down tremendously. matt: 52.09 per barrel. that is the oil here. is tos part of their play try to produce as much as they can to put u.s. shale drillers out of business. but it is not working, is it? alix: it is not just about u.s. shale, it is about targeting non-opec high cost producers, like russia, brazil, and mexico, saying last week that they were going to see no production growth out of these countries next year. the u.s. will grow but not as much as expected

now produces 70% more oil than it did five years ago and almost as much as saudi arabia it is why opecannot control prices and why the u.s. may lift a 40-year-old ban on crude exports. here's how fracking works. a well is drilled into sedimentary rock, typically shale. water, chemicals, and sand are injected at high pressure, fracturing the rock and freeing trapped oil and natural gas. the government estimates the u.s. has 48 billion to 58 billion barrels of recoverable shale oil, enough to produce at current rates for at least 14 years. and those estimates are probably conservative. america has a lot of shale deposits. the bakken in north dakota, the marcellus in pennsylvania and new york, the woodford in oklahoma, and in texas, the barnett, the eagle ford, and the permian basin. >> chevron's history in this basin goes back to the early 1920's. almost at the start of the basin. we are fortunate that we have been here for a long time and have been here consistently. this basin has seen ups and downs in terms of production. it had been on a gradual and slow decline. then a number in the

. >>> and the organization of petroleum exporting companies or opec is raising its estimates for global demand growth this year. in its monthly report it said it expects demand growth in 2016 as well. opec said it anticipates the market will be more balanced next year as china uses more oil and the supply from the north american shale deposits grows more slowly. >>> meantime the average price of gasoline has dropped 2 cents over the past two weeks to a national average of $2.83 a gallon. but don't tell that to californians. gas prices in that state are spiking despite the overall downward trend. jane in los angeles explains why. >> reporter: gas prices in california are closing in on $5 a gallon again here $4.95. in some places it has topped $5 a gallon. it isn't even over yet. prices on average friday were $3.66 a gallon according to gas buddy. they're now $4.08 a gallon though i can't find that it cheap anywhere. that's an 11% change in one weekend. and we're expecting to see them go higher this week. what's the deal? nobody is sending their oil to california it is not worth it on the

another big surge in opec.about this benchmark in terms of the reduction going on in the states, the whole production level seems to float between $60 and $70. when you get back to the zones we see the oil come back on stream. nothing will stop this level of supply? jason: i think that is exactly right. you see a heavy levels pickup when wti hits 65. it is resilient, the u.s. production, in the face of the count. the fact that it has not rolled over is another signal that the market will be well supplied. manus: where does china fit in? we have the potential stimulus. the reality is that growth is in question in china. u.s. and china were the only two things that were supporting our dragging rest of the world. iran, china, greece, where does china fit in the story? jason: china is the most important factor. i think that because we are in an oversupplied market, but rapid demand growth has been a bullish signal. china is a huge factor. china has been showing strong growth in gasoline demand, a very consumer driv

scarlet: also there was an increase in production from opec, too. yes, they increased and that was due to b iraq mostly. that was a surprise again. 4.3 million barrels a day -- million barrels total, excuse me. scarlet: iraq considered a part of opec. alix: there's a lot more to that, obviously. the question is if you do see oil prices decline, what kind of see?ay we were may we not 2016 could be the time when we do see m&a if oil prices don't recover. the leveraged companies could be looking for some help. and then a couple big players like exxon and chevron and bp, do have the cash and could go in and make a purchase. exxon is $35 billion. they have got some cash to spend . they have not been interested as of yet. scarlet: alix steel, thank you so much. alix will be back in 15 minutes to take you through the market close. let's look at the top stories to general electric's plans to sell its appliance unit running into a roadblock. the justice department antitrust lawyers are opposing buy the ges plan to business. there has been no final decision o

zenith of the transports was the day opec said they weren't going to cut. let's look at some charts and try to figure it out. the issue here is some of the big names that really haven't fallen apart look as though they are going to succumb as well. just sort of a preamble here. this is a long-term chart since the ronald reagan bull market began. you have basically such epic outperformance. even now the transports down, as much as they are. this spread presumetively is not sustainable. that's the long-term setup that's still in effect, at least what i see. ups, a big name. obviously some. rails have been quite weak, but this looks like it's going to finally join some of the real weakness. my eye, plain chart. sees this, right? so you can no lines. can you draw list lines and each to his own you can draw them any way you want. let's take those away and put these in. again, you can see nothing or you can see something that looks as though it's going to hover at these lows and break. that's my guess, yes, or head and shoulders top. here's our same line and the

it is predicted next year production outside opec will grind to a halt. tom: let's go over to tennis right now and the drama we are seeing in the united kingdom. serena williams is one win away from her 21st grand slam title. she reached tomorrow's final by beating share up over -- by beating sharapova. tomorrow she will face a player from spain. let's move to something pronounceable like murray and federer. brendan: should we just have me read all the headlines? tom: seriously, murray beating federer in the semifinals is a huge deal in the united kingdom. brendan: williams federer? all of a sudden it is 2005. i am 30 again. tom: equities, bonds, currencies commodities, flat out risk on across all sectors, probably even the housing sector. futures at 23. the euro goes one point 1164. -- goes one1.1164. rick barnes are now 34% in the two-year space. right over to the bloomberg professional service. here is that disinflation -deflation migration, down near 0% on the 10 year yield. this is where bill gross -- let's call it the gross rally. price lower, yield

if you look at the middle east and opec, they are at a record this month. opec is continuing to pump above its quota there did there is the great unknown of a run. -- of iran. some forecasters say it will be a gradual gain in supply but if you look at past this ructions and use libya and venezuela as a guide, looks as though the iranian oil might hit the market quicker than anticipated. oilave west texas and brent in a bear market at the moment at this point -- point doesn't look like there will be any relief for prices. rishaad: we will turn our attention now to some of the other stories we have been watching for you today and more with zed. >> big news in the airline world today. tracking shares of china eastern more withairlines. where the delta will invest $450 million. it will give both airlines a stronger foothold in the markets to sell flights between them as well. china eastern is based in shanghai. ceo'sa city that delta has made a focal point. delta and united are competing for us here both the transpacific market. player atalso a major narita and

it was the day again that opec said we're not going to cut.ot of this weakness has to do with the rails. but what's interesting, even as oils come down, the airlines which tried to benefit really aren't benefiting. so you've got no part of this aggregate that's working, not the trucking companies, not the rails. fedex looks identical. >>> biotech stocks sold off sharply today. shares fell off 4%. meg tirrell's at the new york stock exchange with more on what drove this index lower. meg. >> hey, melissa. well, the big thing that drove the index lower today and this week was biogen. if you look at the overall performance of the nasdaq biotech index it was down 5 per for the week. there was only one company that performed worse than biogen this week and that's zoma which lost 79% of its value on a failed clinical trial of its lead drug. now, with biogen that's a huge name, obviously. earlier this week there were some mixed reactions to its alzheimer's data but today it was really the earnings report and the lowered forecast for the year for its m

there's opec.ee any change in the supply/demand situation, the cartel will meet in december, have another opportunity to change its mind on production. a lot of people think it still will not cut. and therefore we could go lower. so there's a reason that you have some of the firms like citi and goldman out on the streets saying we could see a down side here. $40, maybe even a $33 handle for the crude price before we get back up by the end of the year. back to you. >> thanks so much, jackie de angelis. >>> coming up, we're halfway through our halftime portfolio competition. jim lebenthal leading all year. but he was just knocked into second place. now he might try to bribe that man. mike san tolli joins us next. >> keep it fair, mike. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. nobody's hurt,but t

the net effect of that, it just helps put opec back in the driver's seat. but if you don't believe me, let's just take a look at the numbers. the numbers don't lie. prior to 2012, before we put the congressional sanctions in place, the kirk-menendez sanctions as part of the defense authorization act the end of 2011 during that year at that time in 2011 iran was producing 2.6 million barrels of oil a day, 2.6 million barrels of oil a day. by 2013, after the kirk-menendez sanctions had been in effect, iran was down to exporting only 1.1 million barrels a day. so they'd gone from 2.6 million barrels a day down to 1.1 million barrels a day of oil that they're producing and exporting and getting paid for. it in more than half. my state of north dakota alone produces 1.2 million barrels of oil a day. that's more than iran's exporting right now. but if all these sanctions come off, iran gets to go right back up to 2.6 million and beyond. do the math. even a million barrels a day at $50 a barrel, that's $50 million a day. so you can see that this means hundreds of

we got other news out of opec today.y announced their estimate for demand for opec crude in 2016 is still more than 1.2 million barrels less than we were producing, say, last month. if anybody has an oil well, they are just pumping at absolute capacity. >> the demand equation is not making sense with the new updates. in october we watched oil slide from 60 to 50 fairly quickly. at this point what are the technical levels our watching for this trade? >> technically we're looking at $58. that was the old support, the range we talked about. the most influential member of opec, saudi arabia, really ramped up production. it's a quarter million more barrels a day, jackie, than usual. i think they're getting ready to react to the iran deal going through. i think the trajectory is lower. that's a great telling point because we should have a nice lid at $58 on wti. >> check out the live show tomorrow at 1:00 p.m. see you then, scott. >>> coming up, let's make a deal. we're talking to martin franklin of jarden who is behind today'

it is still better to have national oil that it is to have opec oil. i was in the oil business back in the 70's, and there was a congressman named moe udall who i do with time after time to investigate all the bs that was being put on about a shortage. it was a created shortage and i still think there is a bunch of crap -- corruption. it is so cockaded i have actually lost track and have not paid any attention to it in years. high-priced or low price, it would still be better to have our own line they do have opec oil. i just spent several hours last night watching these videos from planned parenthood. anybody can watch that and not get their stomach turned inside out is just beyond me. we talking mangler and goebbels. exterminating people. god dang. but affordable. host: donna is from new jersey, democrats line. caller: my comment would be about the immigrants that are here illegally. well even americans do it too. they work for cash. they don't pay the taxes that if you work for a company that they take out of our pay. check cashing centers are poppi

opec has not shown signs of slowing down. namely iraq and saudi arabia have been adding barrels to the market. we have the specter of iran coming back into the market next year. it looks like with demand growing at above normal rates that the market will be oversup police department plied. >> what will it take for producers to scale back? at some point? >> i think you are seeing that now. the shale production according to the u.s. government's numbers, look like it peaked in april. it's taken a bit of time more than we would have anticipated. we're seeing a slowdown now. the recount did pop up a little bit last week. there was a signal there, when oil probably got aled of itself frankly. wti prices popped up to $60 in the second quarter. the fundamentals didn't support that. i think some companies thought they plightmight go back to drilling. big companies, whiting petroleum petroleum, look to maintain production. not looking to grow even into 2016. i think we're seeing u.s. production if not roll over hard at least the growt

all of this the day after opec raised its demand forecast for 2016. we are watching this oil prices with a lot coming out this morning. greece has the framework for another bailout deal, but now it's up to prime minister alexis tsipras to sell it to his country's parliament. lawmakers accuse tsipras is to increase out after he slid to austerity measures on financial aid. steps include sales tax hikes and pension labor reforms. tsipras has until tomorrow to get the security package to the greek parliament and now parrot does the greek waiter will hold his government together. a deal to talk about this morning. a major chip deal could be in the works and it involves state on chipmaker by his chipmaker. lauren has more on the story. >> i absolutely do. "the wall street journal" and reuters reporting the chinese state on chipmaker chainwide user group has made a $23 billion deal for micron technology that breaks under $21 a share, 19% premium over yesterday. we are seeing today is this a stock that has been cut in half this year. there are concerns about

that is the deepwater situation, not opec, non-us supply.hat is a concern if you wind up cutting enough, you wind up cutting production and you actually have production squeeze down the road because demand is higher and we don't have enough supply, and have higher pricing. betty: i met with the head of shell earlier this month, who was talking about the impact on u.s. production, the decline in oil prices on the rigs that the shale oil industry here, i want you both to listen to what he said about that. >> is probably getting near the bottom, although we can certainly fall further. we have seen a little bit of strengthening in oil prices as they started to fall again. i don't have any doubt you would see the rig count fall again. the stress level is cumulative. companies are seeing that in the onshore business. betty: are we seeing a bottom? added 21 oil industry rigs last week, about six or nine of them came for u.s. shale. we were adding wells in the u.s. as oil prices completely destroyed. you do see rigs lag by about three to five months

, opec has increased production. production of saudi arabia and iraq is over 1.5 million barrels a day higher than it was in november. we are beginning to think that next year we can be $50. share prices in shell, you guys are getting it wrong. either you react to this or we will not sell your shares. that is why the share price has been going down. jon: possibly why they are committed to the dividend. andrew, to bring you into the conversation, just to talk about commodities right now, these guys are reacting to the reality that we could be at $50 for a while. andrew: i would agree with many of javier's comments. this lower for longer notion is being priced in. we also got the iran deal. that is not imminent, but i think if we look into that, it could be as much as 700,000 barrels a day onto the market. the excess supply situation is shrinking, but really slowly. the notion that we might be in the range trade type market for oil 4, 12, 18 months, maybe longer, is what we are seeing priced in. jon: we can talk about

the second factor is opec.heir strategy from focusing on prices to defending market share, leaving members like saudi arabia and iraq producing record levels to maintain their customers, especially big customers in asia like china, japan, south korea, and india. is the nuclearr deal with iran. if sections are lifted, they have been explicit about plans to boost production of oil. even if that doesn't hit the year, until late next that is really a factor that is weighing on prices. fell to theitions lowest in two years. there is a lot of bearish sentiment. there is not a lot of evidence that would indicate oil prices will rise in the short-term. rishaad: thank you very much. we will have more details throughout the program. with hashtag #trendingbusiness. nextl could be in place by bringing in i.t. agreement into the 21st century. didn'tprevious agreement cover products that became popular after 1997, so after three years of negotiation, wto members agreed to eliminate technology products. the wto is calling thi

saudi has told opec it raised oil production to a record in june. opec says that next year there will be stronger demand for its members' crude. that has not happened yet, and oil prices are 46% below where they were a year ago. taking on the challenge posed by rivals such as netflix and dish network. it will offer a skinny bundle streaming service for $15 a month to its extremity internet customers. comcast will include about a dozen channels, including hbo and the four major broadcast networks. those are your top stories at the moment. brendan: greece has struck a deal, kind of. a deal to reach a deal. an agreement to get there. now, tsipras needs members of his own party in athens to approve it. the former belgian prime minister, now a member of the european parliament, lectured alexis tsipras at the european parliament on how to fix greece. this is never happened before in the european market before -- it actually went viral. we spoke with him on whether or not alexis tsipras still has a mandate in his own country. -- the people delivered a huge

sandra: opec doesn't have the power of months used to.er coaster ride continues in the shanghai market. up one day, down the next. following the news an hour. today a decline of 1.3% comes after a weekend that saw beijing for several measures into place to study the market. we saw a little more than 2% gain yesterday in a market that was dirty% since the mid june high. over 20% of listed china stocks are in a trading halt as the selloff continues. as for the rest of the asian markets, results mixed with japan's nikkei added 1%. hong kong was down more than a full percent. let's say you cut up another global market action, but can europe's stock markets trading to the downside. growing consensus leaders get together this morning about what will come out of the meetings. stock market future showing positive sentiment as they kick off the tuesday morning. that morning cup of joe at starbucks will cost you a whole lot more money. as of this morning lauren has the story. lauren: again, prices going up. the tall and thin tea coffee. we will see

but stats out of opec as well as iran developments. what was the biggest factor for you? >> a lot of it come do you understand to positioning. remember that big spike in the month of april. a lot of people say it was driven by hedge funds. by macro hedge funds which were buying oil because they wanted to hedge themselves against the yields. that was the story we saw in april. maybe this is a big reversal in terms of positions but i put the question out to petro matrix and they responded oil price versus to worry more about it iranter than grexit. >> we have known about iran oil coming back online. the potential impact on supply-demand equation so the fact that the market is reacting this much is some what interesting. it's also interesting to see that it seems like out of all asset classes we saw the biggest reaction to the greek vote in the commodity market. oil prices moving down 8%. a lot having to do with the stronger dollar and weaker euro. >> but if we bring in the data on opec reports coming that it was the highest monthly level since august 2012 coming out of opec

the opec monthly market report was out.cating that demand for its product could be dropping. that is not good for the supply demand story and also looking at a little bit of a stronger dollar today. the last reason products are lower today. gasoline prices down two cents in two weeks but not so lucky in california where they're up $0.09 in that time. refinely issues, new and old. some analysts saying californians can see prices at the $4 range before things come down. right now oil prices wti trading at $55.91. >> california getting hit hard on gas prices. when we come back, hillary clinton expected to make her first economic speech today and they could attack the new sharing economy. >> and later on a new move in financial technology and student loans. as bob said dow up 177. that's close to the session highs. back in a moment. ♪ if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. hurry, before this opp

you take united states 9-plus opec 31 that's 40.93 leaves you 50 million barrels. that 50 million barrels is experiencing a 5% to 6% decline. so stand by that -- you say well iraq oil will come on. well iraq's 44. that's probably peaked now. you go back to the rest of the world. 50 million barrels which includes russia and others they're only experiencing a 5% to 6% decline. now we're talking about 2 1/2 million, 3 million barrels more that you'll need next year to replace a part of the 50 million. so you're going to need the oil. >> boone, how you reading the take leaves on the talks with iran? some say that the longer these talks are drawn out, the less likely a deal will happen and therefore the less likely the sanctions will be lift and that oil will reach the market -- i should say the oil will not reach the market. how are you sort of reading what's going on? is. >> well, i'm reading -- and i couldn't hear the question totally. but i think i'm going to answer what you wanted. is that i see the iranian oil cuts comes on mid yea

again, it all depends on what opec does. restrict their production back to allow ran to start exporting more oil it shouldn't be that bad. gasoline price and jet fuel and diesel prices are going to go up. they have crude oil production but don't have refinery production. their going to be very big buyers of gasoline, jet fuel and diesel fuel. >> how will it affect china and russia? >> you see china russia, europe feel the economic benefits of these economic sanctions being lifted especially china and europe. russia, it's a here or there because they have to still deal with their own economic sanctions. when you see other countries like europe and china they're going to find benefit there. it's about the oil that iran's going to start buying. that's refined products, so that's going to help right away. >> how will this affect what's happening in syria? >> well, you know, iran, we heard today that they are not going to give up on their partners that they have right here and right now. syria and lebanon they're going to maintai

opec is million barrels a day over the call for oil next year.lot of imbalance out there. hard to see any reason why it will go away. the iranians certainly stand to add to that balance. liz: people looking to put the screes on iran, i remember in 2013 iran needed oil north of $130 a barrel just to close out their books, to manage whatever they were doing when it came to the oil world. this would be horrible for them to have low price. >> they have to squeeze into a market already well-supplied. they have to edge out the saudis. they have to push out kuwaitis and iraqis and do this in a market where nobody is giving any room so it could be a pretty nasty battle going into next year. liz: can i quickly ask you, am i going to be paying less for gasoline in the future because there is a deal with iran? >> i would say you're more likely to be paying less than more, no doubt about it. i do want to say one other thing that is not being said in all this and i think it has to be noted. none of this could have happened if not for the u.s. shale boom becau

you covered opec extensively in the past. opec came out sand said, we'll have more demand that is completely swamped as you see. now 52 bucks. melissa: options pit founder a mark sebastian covering it all for us from the cme in chicago. ending positive for the year we were talking about greece reaching a deal in the e.u. still a lot of challenges ahead though. what do you think? >> yeah, you know we saw a couple of big updates friday and today. i think we slow down tomorrow through wednesday until we see actually vote. one thing surprised me how the vix sold off. absolutely hammered friday and today. completely crushed from a high near 20, to down below 14, basically implying this entire deal is a done deal. i think anybody watching greek politics will tell you this is probably not as easy as the vix is pricing it. so i would not be surprised to see the volatility index rally a little bit next couple days. a little softness and less rallying by the s&p over next couple days. melissa: really? would you take some winnings off t

goldman sachs say surging opec outputs and resilience drilling activity any u.s.l push crude to $45 a barrel by october. commerzbank said we manus seen the bottom. -- said we may not have seen the bottom. the median forecast of strategists is for an oil price of $62 in the fourth quarter. $51.09 is where we are now. manus: when it comes to the iranian deal, thank you mark barton. the u.s. saying they will cease to apply sanctions to iran if it up -- if it complies with the accord. sanctions release on central-bank transactions u.s. these are the u.s. forces on oil and banking across the spectrum. the sanctions are raised and these are important announcements from the eu and europe. the iranian breaking. shine bright like a diamond. from rihanna to royalty. >> she has designed jewelry for years and among her fans as top princes rihanna and real princes tape -- kate middleton. crooks they are her favorite earrings. -- crooks they are her favorite air. i designed cufflink. -->> they are her favorite ea rrings. as we opened more stores, designed what i like to du jour

. >> for now opec has kept its output steady despite lower prices. more oil from the united states is hitting the market. it has prompted the oil price will be close to the current levels. markus: shell made this announcement as it reported lower profits in comparison to the same time last year. that was better than expected. they were not the only company to report today. far from it. let's talk you through some of the other corporate results we have been getting. the found the -- lufthansa is benefiting. they have also confirmed its full-year outlook, forecasting pretax earnings of 1.5 billion euros. it warns that ticket prices will come under pressure as low-cost ryanair presses into the german market. at the same time, no kia reported stronger-than-expected second-quarter earnings. net profits rose 60% on the same time last year. it suggests the company's bid to turn around is paying off. it sold its mobilephone business to microsoft and is now focusing on selling networks instead. meanwhile, samsung suffered a fifth straight drop in quarterly ea

the country is opec's second largest oil producers. low oil prices means the economy is struggling. >> it took a lot of effort to get this frozen yogurt change to baghdad. it's one of the first american franchises here. part of an iraqi company that has brought in the iranian ice cream brand ice pack. all an indication that war-weary iraqis are hungry for novelty no matter what the source. the businessman behind this says he managed to open the shop without help from the iraqi government. >> translator: we had to invite foreigners to train our employees. the products were delayed four months. so our difficulties are not from security. >> reporter: the government wants private investment but admits there are a lot of obstacles. there are lots of risks. but in this market, the possibility of explosions isn't normally part of that risk. doing business in baghdad is not for the faint of heart. economists say iraq needs to expand the private sector to counter high unemployment and rising poverty rates. but its problems now is bigger than th

both from opec and nonopec but in particular from opec producers it was record high and i think thatmuch more what hurt oil prices this week. the existing supply the threat of iranian supply is an issue. >> the uncertainty from china as well as greece that's something that the iea referenced and we'll continue to watch. oil prices higher in today's trade but still in bear market territory. let's talk tech. facebook may be looking to encroach on youtube's turf. the social networking giant held talk with major record labels about getting licensing rights for music videos and feeds. they want to start adding videos. video views have boomed thanks to the auto play feature. the company now streams 4 billion videos per day. facebook shares flat. >> the increasing popularity of music streaming put immense pressure on the industry with record labels and artists suffering losses. carolyn sit down with stephen whitt. the author of a new book that tells how one act of piracy changed the music industry forever. >> what's happening is ad supported streaming pay almost nothing to the artist. so it

ecuador is an opec country dependent on oil drilling. >>> tents could become a hot item as philadelphia prepares to welcome pope francis. the city is considering a plan that would allow camping in some parts in september. philadelphia currently prohibits camping in its park system. in ecuador this week many people slept in tents to catch the pope there. nothing is set in stone and there's no word on which philadelphia parks could become camping grounds. we'll keep you posted on that. >>> meanwhile, nbc traveled to the pope's homeland. his passion for the poor began with his visits to some of the poorest neighborhoods in his native bunsenos aires, argentina. >> that's why we are trying to do something in order to help families to move forward. >> patricio's dream is to help many of the children in that shantytown go to college. >>> coming up later today, a side of pope francis you may not have seen before that we may not see again. at 6:00 p.m. jim rosenfeld will tell you about the pope's favorite dance, the tango. at 11:00 p.m. we'll tell you about his favorite sport. three guesses of w

analysts expect lower prices and perhaps loosen opec's grip on the world market.ood thing if it's more influence and cash for iran? >> we'll see. i think, again, as president obama hasp stressed time and time again, this is not the answer to every situation, every problem involving iran. i think ultimately the combination of very, very significantly enhanced american oil production and possibly iranian production is going to change the world oil market and certainly the leverage the opec countries have. remember iran's at some point is going to produce their oil and sell it. russia and china agreed pending a nuclear deal. now that we have one, russia and china and japan are going to buy iranian oil. there is nothing we can do. this deal is not a factor in that. the iranian oil will be sold. >> the latest about the controversy around hillary clinton's e-mails. new york times reporting that zres gers found on clinton's e-mail server. the inspectors general and the clinton team note these four e-mails in question were not marked classified at the time. is this going

got into a price war, back before the opec meeting last november, one of the biggest disappointments in the oil market was the lack of demand growth in europe. they were in a recession. they were really slowing down the global economy. they were putting sanctions on russia. it was killing oil demand. then of course the qe came and they started to see things get a little better in the eurozone. oil demand exceeded expectations and that really was the thing that gave oil that boost. but now you're talk taking all that away almost immediately. david: quickly, phil, oil in the $40 range soon? >> depends on the events of the next 24 hours but i say there is a shot. david: phil flynn, thank you very much. >> we want to take you back to a live picture of the pentagon, the briefing room right now. at any moment we do expect to see president obama. he has just received a briefing. the briefing is about the strategy. the strategy to deal with isis and it has been 10 months since the united states began airstrikes. i want to bring back in rob o'neill. while we're monitoring, waiting for the pre

. >> the states always raise these taxes and they say -- they blame it on opec. the federal highway transportation fund is going to be empty soon and there's a huge debate over how to make it up. i agree with charlie to a greater extent. what are you doing with that money? >> they spend $50 billion a year and get $34 billion a year in the highway trust fund. they're overspending not doing what they're saying. ipts going to mass transit, landscaping, flowers and the medians, believe it or not, bike paths. it's being misused sometimes on the scale that charlie is talking about -- >> what's wrong with flowers? >> nothing's wrong with flowers but, listen at some point we need to curb government spending. this is the largess that put greece in the poorhouse. >> and thank you for the flowers last week. increase in the federal tax in 1993 were used in large part for deficit reduction of all things and not fixing roads and bridges that are now in such big trouble. other issue, because of fuel-efficient vehicles and the fact that teenagers aren't getting driver's licenses

that put us right back in the situation where we are getting energy from opec.that's not what we want. we need to build a plan for this country. host: would you advocate the export of crude overseas? guest: absolutely. that is vitally important. it's about growing our industry. we have to build the on a global basis. the more we produce, that is what helps keep energy prices lower and that is what keeps prices low at the pump for our consumers. host: here's jim from west virginia. go ahead. caller: good morning gentlemen. i respect the hard work that you guys try to do but this thing with iran and the oil they, and the gun issues, and all the freedoms that they are trying to lift -- i have no faith in the administration. as far as i'm concerned the president is weak. that is why he wants to sign this pact with iraq because, if you go back to the crimea incident where prudent invaded their -- where present -- putin invaded, he was not going to commit to anything. he backs down. putin basically called him a coward because he would not stand up and do anything abou

new bionic hand and he can switch between one for driving, a total of 24 grip patterns allow him to opecndments and shake hands. >> it knows where it is in space, share to a smart 15 or a weed controller. >> this is my robot hand. rather than being captain hook. >> he is a boston area resident and worn a series of process nettics since losing his arm to cancer at the age of 14. >> a major while fire in the north bay threatens hundreds of home this morning with the battle firefighters are raging right new if protect them. >> vice president biden travels to the bay area today on a mission for the white house. a new season brings a new look. a chance to try something different. this summer, challenge your preconceptions and experience a cadillac for yourself. ♪ the 2015 cadillac srx. lease this from around $339 per month, or purchase with 0% apr financing. >>> live from the kgo-tv broadcast center this is abc7 news. >> we have develop news we are following, the ferocious fire burning near lake berryessa jumping to 6,000 acres destroying one build and damaging at least one more. good morning

how do conflicts in the middle east play out and will opec producti be threatened? the cartel will meet again in december. if there are no issues of violence across the region, wille cartel decide to cut production? there's iran. if the nuclear deal is reached and sanctions lifted will the internate flooded with oil? and what did demand? eurozone is a concern of oil prices to come. that's your second half energy outlook for "nightly busine" i'm jackie deangeles. >>> and finally tonight, the roads will be the busiest they've been in years this holiday weekend, thanks to a stronger economy and rising consumer confidence. aaa expects the number of american hitting the roads will be the greatest since 2007 because of cheaper gas. the national average today around $2.78 a gallon for regular that he is nearly 90 cents less than it was last independ day weekend. >>> i will not be one of those people on the road. >> i will probably not be either. no. stay home. >> i'll be local. >> that does it for this special edition of "nightly busine i'm sue herera. thanks for watching.