When comparing my forecast/valuation for an individual company to that of a Wall Street firm it is important to know the oil & gas price deck that is being used in the forecast models. We should see First Call price targets moving closer to my valuations because more Wall Street firms have increased their forecast price for oil. - Dan
Analysts Bullish On Oil For First Time In Months. Wall Street Journal.
Banks upped their oil price forecasts in October for the first time in six months, as the market shows growing confidence in OPEC’s agreement to cut crude production, reports Georgi Kantchev. Brent crude–the global benchmark–should average $54 a barrel next year, while West Texas Intermediate, the U.S. oil gauge, should average $51 a barrel in 2018, according to a poll of 14 investment banks surveyed by The Wall Street Journal. Both the WTI and Brent forecasts are up $1 from the September survey. “Fundamentals are improving, demand is robust and OPEC compliance with cuts is high,” said Jason Gammel, an analyst at Jefferies, one of the banks surveyed.
Crude Oil Price
Crude Oil Price
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Crude Oil Price
"Wednesday's EIA report was bullish so the longs took profit then but now the uptrend is reasserting itself. Roll-over of the OPEC/non-OPEC deal looks certain and is also supportive," says Tamas Varga of London brokerage PVM Oil Associates.
“Geopolitical risk is back in the picture in a very clear way,” says Energy Aspects analyst Richard Mallinson, citing ongoing conflict in northern Iraq and Venezuelan financial instability.
A close for WTI over $55 would be SIGNIFICANT. Here is why: https://www.investing.com/analysis/crud ... -200258071
“Geopolitical risk is back in the picture in a very clear way,” says Energy Aspects analyst Richard Mallinson, citing ongoing conflict in northern Iraq and Venezuelan financial instability.
A close for WTI over $55 would be SIGNIFICANT. Here is why: https://www.investing.com/analysis/crud ... -200258071
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Crude Oil Price
Also helping is an uptick in global economic growth that has sparked stronger demand; “It’s not just faster growth, it’s faster growth in areas that happen to be oil consuming,” says Carlyle research director Jason Thomas.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Crude Oil Price
The technical charts show resistance at $56 for WTI. Above that the next resistance level is $60.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Crude Oil Price
A well respected research firm says oil could go to $500/bbl. I actually hope it does not because that would be a major blow to the global economy. I do think we may see $100/bbl by 2020 because this oil price cycle has gone on too long and lack of capital spending is likely to lead to oil shortages within two years. - Dan
Why oil could go to $500: http://thecrux.com/dyncontent/oil-price ... =MKT341838
Why oil could go to $500: http://thecrux.com/dyncontent/oil-price ... =MKT341838
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Crude Oil Price
Crude oil prices settled higher on Friday following a late-session surge on the back of data showing signs of U.S. production tightening as US oil rig counts fell to a nearly six-month low.
On the New York Mercantile Exchange crude futures for December delivery rose $1.10 cents to settle at $55.64 a barrel, while on London's Intercontinental Exchange, Brent added $1.50 to trade at $62.12 a barrel.
Crude oil settled at two-year highs amid a spike in sentiment on oil prices after the number of oil rigs operating in the US fell by eight to 729, declining for the fourth week in five, according to data from energy services firm Baker Hughes. < No matter how high the price of oil goes, we will not see the active rig count go up until early 2018. Capital spending budgets are now locked in for the remainder of the year. - Dan
That was the first time since May 26 that oil rig counts fell below 730, fueling expectations that market rebalancing is well underway as data earlier this week showed OPEC members continued to cut output. Saudi Arabia continued to cut oil output as inventories declined significantly in October, Saudi Energy Minister Khalid Al-Falih said Thursday, describing compliance with the OPEC-led accord to curb output as "excellent."
Russian also adhered to the cuts stipulated in the output-cut agreement despite increasing output to 10.93 million bpd in October from 10.91 million bpd in September, official data showed Thursday.
In May, OPEC producers agreed to extend production cuts for a period of nine months until March, but stuck to production cuts of 1.2 million bpd agreed in November last year.
The rally in crude oil prices comes as investor optimism on an extension of the OPEC-led agreement following recent comments from both OPEC and non-OPEC officials ahead of the OPEC meeting in Vienna on Nov. 30.
Also, weather forecaster are now predicting that Europe will have a very cold winter. That will increase demand for heating oil and today the European market is running low on heating oil and diesel.
On the New York Mercantile Exchange crude futures for December delivery rose $1.10 cents to settle at $55.64 a barrel, while on London's Intercontinental Exchange, Brent added $1.50 to trade at $62.12 a barrel.
Crude oil settled at two-year highs amid a spike in sentiment on oil prices after the number of oil rigs operating in the US fell by eight to 729, declining for the fourth week in five, according to data from energy services firm Baker Hughes. < No matter how high the price of oil goes, we will not see the active rig count go up until early 2018. Capital spending budgets are now locked in for the remainder of the year. - Dan
That was the first time since May 26 that oil rig counts fell below 730, fueling expectations that market rebalancing is well underway as data earlier this week showed OPEC members continued to cut output. Saudi Arabia continued to cut oil output as inventories declined significantly in October, Saudi Energy Minister Khalid Al-Falih said Thursday, describing compliance with the OPEC-led accord to curb output as "excellent."
Russian also adhered to the cuts stipulated in the output-cut agreement despite increasing output to 10.93 million bpd in October from 10.91 million bpd in September, official data showed Thursday.
In May, OPEC producers agreed to extend production cuts for a period of nine months until March, but stuck to production cuts of 1.2 million bpd agreed in November last year.
The rally in crude oil prices comes as investor optimism on an extension of the OPEC-led agreement following recent comments from both OPEC and non-OPEC officials ahead of the OPEC meeting in Vienna on Nov. 30.
Also, weather forecaster are now predicting that Europe will have a very cold winter. That will increase demand for heating oil and today the European market is running low on heating oil and diesel.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group