Oil Prices - Feb 22

[dan_s]

Oil prices recorded hefty gains in North America trade on Monday, with West Texas Intermediate futures climbing above the $33-level after the International Energy Agency said it expected U.S. shale production to fall this year and next. The International Energy Agency said in its medium-term outlook on Monday that U.S. shale oil production was expected to fall by 600,000 barrels per day this year and another 200,000 bpd in 2017. < The only way the decline slows in 2017 is with WTI over $70/bbl.

Prices found further support amid indications U.S. oil drillers are cutting back on production. According to industry research group Baker Hughes, the number of rigs drilling for oil in the U.S. decreased by 26 last week to 413, the ninth straight weekly decline.

A lower U.S. rig count is usually a bullish sign for oil as it signals potentially lower production in the future.
-------------------------
Read the EPG newsletter carefully. By Q2 it will become clear to EIA and IEA that the global market is rapidly moving back into balance, regardless of what OPEC does.

Send me an e-mail if you'd like to see the Raymond James report I refer to in the newsletter: My e-mail is dmsteffens@comcast.net

[setliff]

wti yesterday broke the downtrend that had been in place since oct. it also bullishly penetrated the 50 dma. that trend line should now become support--time will tell.


http://stockcharts.com/h-sc/ui?s=$WTIC& ... &listNum=1