Oil Price - June 17

[dan_s]

Oil futures rose Friday for the first time in seven sessions as concerns about the prospect of Brexit abated.
U.S. crude added 1.69% to $46.99 at 06:45 ET after sharp falls on Thursday. Brent crude rose 2.25% to $48.25.
British Labour MP Jo Cox, a vocal advocate of Britain’s permanence within the European Union, was stabbed and shot dead on Thursday.
The tragedy was seen as favoring a “Remain” vote. Campaigning for the June 23 referendum on Brexit was suspended.
The dollar was lower on Friday after some downbeat U.S. economic data reduced the odds of a rate hike.
A weaker dollar lends support to the oil market.

Just remember that when the price of oil moves on "FEAR" rather than fundamentals, the price move seldom lasts. "Brexit" is a fear, not a reality. Even if the UK does leave the European Union, the impact on oil demand will be nil.

Oil Demand is increasing + Oil Supply is falling = Higher Oil Prices

[dan_s]

All eyes are on the UK as they vote on whether or not to stay in the European Union. But new analysis shows that fears of a so-called Brexit are overblown.

Read:
http://finance.yahoo.com/news/3-reasons ... 54797.html

[dan_s]

Oil prices fell to a five week low on Thursday as a more bearish sentiment took hold of crude markets, but Friday’s trading saw oil rally to close out the week. During the week, a less than expected drawdown in U.S. crude inventories caused a brief spike in oil prices, but traders continued to see signs of Canadian production coming online again after the EIA reported a 525,000 barrel build at the Cushing crude delivery hub. Oversupply concerns have taken a turn for the worse in recent weeks due to the willingness of North-American shale oil companies to pick up drilling after prices surpassed the $50 mark. In addition to this, markets were shaken as the possibility of a Brexit and a looming interest rate hike by the U.S. Federal Reserve Bank continued to drive investors to safe havens such as the U.S. dollar and gold. Friday’s turnaround however, suggests that these fears are waning and markets are looking for further upside coming from increasing outages in Nigeria and Latin-America.

North Dakota oil output faces steepest decline in history. North Dakota’s oil production has declined more than 70,000 barrels in April, resulting in the largest drop in production the oil province has ever seen. The Bakken/Three Forks formation is now producing less than 1 million barrels per day as a result of cold weather and persistently low oil prices. North Dakotan oil statistics indicate an average decline of over 250 barrels per well on a total of 12,739 producing wells. Operators active in the Bakken are likely to remain cautious and are not expected to ramp up well completions and add new drilling rigs until WTI prices surpass $60.

Stage is set for oil shortage in 2017: According to energy researchers from Wood Mackenzie, a whopping $1 trillion will have been cut from total investment in oil and gas development through the end of this decade. Although nearly every oil producing country has adjusted capital investment downward, the biggest capex cuts this year and in 2017 ($125+ billion) will be made in the U.S. oil patch. The Canadian and Russian oil sector are expected to cut between $25 and $40 billion. The effects of expiring hedges, lower revenues and ongoing oil price uncertainty continue to weigh on capex budgets