Read: https://www.investing.com/analysis/crud ... -200174995
As I have been telling you in my weekly podcasts since mid-December, WTI is likely to flop around in the $50 to $55 range through March. It should move higher when OPEC + Russia comply with their agreements (confirmed by 3rd party sources) and the results of production cuts show up in OECD inventories. Keep in mind that it takes about 3 months for oil to flow through the global system and show up in inventory data.
U.S. oil production will rise in 2017, but the rest of non-OPEC production will probably be flat to 2016.
IEA says demand for hydrocarbon based refined liquids, primarily from crude oil, will increase 1.3 million barrels per day from 2016 to 2017. The big spike in demand will come in the 3rd quarter.
Oil Price - Feb 7
Oil Price - Feb 7
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil Price - Feb 7
The U.S. dollar is up ~1.5% since last Thursday. Than has a lot to do with the recent dip in oil prices.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil Price - Feb 7
"Big oil isn’t making money or at least not the type of money it will take to make the investments needed to meet the demand of the future. You can add shale rigs all day long but it will be hard to replace the projects that big oil won’t be investing in. While short term, this market may be focused on a U.S. product glut, right now we are on the road to a very tight market in the very near future." - Phil Flynn
Read: https://www.investing.com/analysis/big- ... -200174981
Read: https://www.investing.com/analysis/big- ... -200174981
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil Price - Feb 7
This is pretty revealing statement by Core Labs in their last earnings call.
As Core has continually stated, the Middle East was producing oil at unstable levels, and we are sure that some of these cuts will more than welcome by several Middle Eastern producing countries. All that Core did was listened to the reservoirs and not rhetoric.
Not only are cuts needed due to the pricing environment - but more importantly the reservoirs themselves need to slow down.
As Core has continually stated, the Middle East was producing oil at unstable levels, and we are sure that some of these cuts will more than welcome by several Middle Eastern producing countries. All that Core did was listened to the reservoirs and not rhetoric.
Not only are cuts needed due to the pricing environment - but more importantly the reservoirs themselves need to slow down.
Re: Oil Price - Feb 7
Near-record build in crude:
<<The crude oil build is ridiculous considering the OPEC agreement. It is almost as if the number is off by a decimal point. And to our experienced eye it says the OPEC countries like Iran were pumping and filling barges pre-deal in hopes they could dock after the deal and sell at higher prices.
That and cartels don't work when half the production is not bound by the deal, like Russia. >>
https://www.marketslant.com/articles/be ... -opec-lies
<<The crude oil build is ridiculous considering the OPEC agreement. It is almost as if the number is off by a decimal point. And to our experienced eye it says the OPEC countries like Iran were pumping and filling barges pre-deal in hopes they could dock after the deal and sell at higher prices.
That and cartels don't work when half the production is not bound by the deal, like Russia. >>
https://www.marketslant.com/articles/be ... -opec-lies