oil price

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mkarpoff
Posts: 810
Joined: Fri May 30, 2014 4:27 pm

oil price

Post by mkarpoff »

Oil price is just bumbling around here. What catalyst do you think might make it start moving up again? Thx.
dan_s
Posts: 37277
Joined: Fri Apr 23, 2010 8:22 am

Re: oil price

Post by dan_s »

Non-OPEC production will continue to decline in Q3 and EIA says demand for hydrocarbon based liquids will increase by 1.25 million barrels per day.
Increasing demand + falling supply = higher prices < This is about as simple as it gets.

Go to this link and take a real hard look at that chart: https://www.iea.org/oilmarketreport/omrpublic/

Actually, the longer oil stays under $60/bbl the higher the chance of a oil supply shortage in 2017.

Q2 results will start pouring in next week. That should help calm some nerves.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 37277
Joined: Fri Apr 23, 2010 8:22 am

Re: oil price

Post by dan_s »

BTW almost 100% of recent oil price weakness can be attributable to Brexit. A strong dollar and FEAR of weakening demand in Europe are definitely a headwind for oil.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 37277
Joined: Fri Apr 23, 2010 8:22 am

Re: oil price

Post by dan_s »

Food for thought:

Many Americans believe that, thanks to the “Shale Oil Boom” the United States is close to being energy independent. Nothing could be further from the truth. Here are some statistics from the Department of Energy’s EIA website. Over the last six weeks:

• U.S. crude oil production has averaged 8,570,000 barrels per day
• During the last six weeks, U.S. production has declined 222,000 barrels per day
• U.S. crude oil imports have averaged 7,992,000 barrels per day
• During the last six weeks, U.S. crude oil imports have increased 512,000 barrels per day

At the rate we are going, the United States will be dependent on imports for more than 50% of the oil we consume to run our economy by year-end.

IMO this is a national security issue but it rarely comes up in the campaign.
Dan Steffens
Energy Prospectus Group
Fosterplc
Posts: 46
Joined: Fri Jan 02, 2015 2:35 pm

Re: oil price

Post by Fosterplc »

We need a rally! At least my portfolio does.....
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