WTI is hanging around just over $63/bbl this morning.
Here is what Art Berman thinks: http://www.artberman.com/oil-price-crossroad/
I am assuming WTI averages $60/bbl in 2018 and 2019 in all of my forecast/valuation models, but I believe WTI moves higher this summer. Raymond James arguments for $70 WTI in Q4 make sense to me.
Raymond James published a new Energy Industry Brief this morning on the topic of pipeline takeaway capacity from the Permian Basin. Room for more production from the Permian is now tight, especially from the Delaware Basin. If you would like to read the report, send me an email and I will forward it to you. dmsteffens@comcast.net
Oil Price - Feb 26
Oil Price - Feb 26
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil Price - Feb 26
On 2/23/2018, Reuters reported Libya's El Feel oilfield was shut in on Friday after the withdrawal of guards from the field that is in an area where there are armed groups, a local mediator and a Libyan oil source said. The field, operated by a joint venture between the state-owned National Oil Corporation (NOC) and Italy's Eni (E-NC), was producing 70,000 b/d before the shutdown. The stoppage came after negotiations on Thursday to try to resolve a protest over pay and other demands by some guards at the field, which had led to the evacuation of non-essential staff the previous day, sources said.
On 2/19/2018, Reuters reported Libya's National Oil Corporation (NOC) is suffering ongoing delays in receiving budget money from the government and this could reduce production, the head of the state company said. Mustafa Sanalla made the comments after meeting the head of Al Jouf Oil Technology Company, who said the NOC subsidiary was suffering from financial problems that had delayed projects and salary payments. "The entire sector is suffering from these problems because of delays in the finance ministry disbursing budgets to the corporation for this year," Sanalla said in a statement from the NOC. "This slowdown will create negative consequences for the whole sector leading to a large decline in the level of production once more and a negative impact on development projects in the oil sector."
The NOC, which has raised Libya's oil production to more than 1 million barrels per day (bpd) from lows of around 200,000 bpd in 2016, receives its budget through the central bank and the internationally recognized government in Tripoli. Sanalla has repeatedly complained in the past about late and partial budget payments, which he says have hampered output.
On 2/20/2018, Reuters reported OPEC is closing in on its goal of reducing oil inventories held by industrialized nations to their five-year average, the original target of a supply-cutting pact with Russia and others, figures from the group's head of research showed on Tuesday. Oil stocks in developed OECD economies, which were 340 million barrels above the five-year average in January 2017, were just 74 million barrels above that level last month, Ayed Al Qahtani, OPEC's head of research, told a conference.
On 2/19/2018, Reuters reported Libya's National Oil Corporation (NOC) is suffering ongoing delays in receiving budget money from the government and this could reduce production, the head of the state company said. Mustafa Sanalla made the comments after meeting the head of Al Jouf Oil Technology Company, who said the NOC subsidiary was suffering from financial problems that had delayed projects and salary payments. "The entire sector is suffering from these problems because of delays in the finance ministry disbursing budgets to the corporation for this year," Sanalla said in a statement from the NOC. "This slowdown will create negative consequences for the whole sector leading to a large decline in the level of production once more and a negative impact on development projects in the oil sector."
The NOC, which has raised Libya's oil production to more than 1 million barrels per day (bpd) from lows of around 200,000 bpd in 2016, receives its budget through the central bank and the internationally recognized government in Tripoli. Sanalla has repeatedly complained in the past about late and partial budget payments, which he says have hampered output.
On 2/20/2018, Reuters reported OPEC is closing in on its goal of reducing oil inventories held by industrialized nations to their five-year average, the original target of a supply-cutting pact with Russia and others, figures from the group's head of research showed on Tuesday. Oil stocks in developed OECD economies, which were 340 million barrels above the five-year average in January 2017, were just 74 million barrels above that level last month, Ayed Al Qahtani, OPEC's head of research, told a conference.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group