Opening prices:
WTI is up 41c to $56.95/Bbl, and Brent is up 49c to $62.62/Bbl.
Natural gas is up 5.8c to $2.879/MMBtu < Thank you Mother Nature!.
Oil prices climbed on Tuesday morning in London boosted by hopes for a U.S.-China trade deal and optimism that the Trump administration could roll back some of the tariffs it has imposed on Chinese imports.
OPEC Secretary-General Mohammad Barkindo said Tuesday the oil market outlook for 2020 may have upside potential, appearing to downplay any need for deeper production cuts. Earlier on Tuesday the Organization of the Petroleum Exporting Countries released its 2019 World Oil Outlook, in which the group said it would supply a diminishing amount of oil in the next five years as output of U.S. shale and other rival sources expanded.
China is pushing U.S. President Donald Trump to remove more tariffs imposed in September as part of a Phase 1 deal, which would help to ease some of the economic fallout from the protracted trade dispute between the world's two largest oil consumers. Both countries have slapped tariffs on each other's goods in a trade war that has dragged on for 16 months. “If some of the existing tariffs were to be dismantled, that should restore some measure of global demand for oil as economic and trade conditions recover," said Han Tan, market analyst at FXTM.
The U.S. Federal Reserve's interest rate cut last week, recent weakness in the dollar and improved U.S. jobs growth in October also underpinned oil prices, analysts said.
"We believe that the strength in oil prices will be short-lived, given the scale of the surplus that is expected over the 1H20," ING analyst Warren Patterson said, referring to the first half of 2020.
"The risk to this view is if OPEC+ surprises the market in December by announcing even deeper than expected cuts for 2020."
Oil Price - Nov 5
Oil Price - Nov 5
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil Price - Nov 5
Closing prices;
WTI prompt month (DEC 19) was up $0.69 on the day, to settle at $57.23/Bbl.
NG prompt month (DEC 19) was up $0.041 on the day, to settle at $2.862/MMBtu.
“The overwhelming tendency to push the oil market up continues, and it’s aided this time by another stock market high, continued hopes for a positive U.S.-China outcome and indications that output from key shale patches may be weakening,” said John Kilduff, founding partner at New York energy hedge fund Again Capital. < FINALLY THE "EXPERTS" are noticing that with the active drilling rig count falling week after week U.S. shale production growth has STOPPED.
Wall Street’s best-known stock index, the Dow Jones Industrial Average, hit all-time peaks for a second straight session on Tuesday before consolidating gains after media reports suggesting U.S. and Chinese officials appeared serious enough to clinch a partial trade deal by considering rolling back more tariffs than initially said.
Pioneer Natural Resources (NYSE:PXD) Chief Executive Scott Sheffield, meanwhile, said he expects the Permian Basin, the top U.S. shale field, to “slow down significantly over the next several years.” “I don’t think OPEC has to worry that much more about U.S. shale growth long term,” Sheffield said on Tuesday on a call with analysts, Reuters reported.
WTI prompt month (DEC 19) was up $0.69 on the day, to settle at $57.23/Bbl.
NG prompt month (DEC 19) was up $0.041 on the day, to settle at $2.862/MMBtu.
“The overwhelming tendency to push the oil market up continues, and it’s aided this time by another stock market high, continued hopes for a positive U.S.-China outcome and indications that output from key shale patches may be weakening,” said John Kilduff, founding partner at New York energy hedge fund Again Capital. < FINALLY THE "EXPERTS" are noticing that with the active drilling rig count falling week after week U.S. shale production growth has STOPPED.
Wall Street’s best-known stock index, the Dow Jones Industrial Average, hit all-time peaks for a second straight session on Tuesday before consolidating gains after media reports suggesting U.S. and Chinese officials appeared serious enough to clinch a partial trade deal by considering rolling back more tariffs than initially said.
Pioneer Natural Resources (NYSE:PXD) Chief Executive Scott Sheffield, meanwhile, said he expects the Permian Basin, the top U.S. shale field, to “slow down significantly over the next several years.” “I don’t think OPEC has to worry that much more about U.S. shale growth long term,” Sheffield said on Tuesday on a call with analysts, Reuters reported.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil Price - Nov 5
Closing prices;
WTI prompt month (DEC 19) was up $0.69 on the day, to settle at $57.23/Bbl.
NG prompt month (DEC 19) was up $0.041 on the day, to settle at $2.862/MMBtu.
“The overwhelming tendency to push the oil market up continues, and it’s aided this time by another stock market high, continued hopes for a positive U.S.-China outcome and indications that output from key shale patches may be weakening,” said John Kilduff, founding partner at New York energy hedge fund Again Capital. < FINALLY THE "EXPERTS" are noticing that with the active drilling rig count falling week after week U.S. shale production growth has STOPPED.
Wall Street’s best-known stock index, the Dow Jones Industrial Average, hit all-time peaks for a second straight session on Tuesday before consolidating gains after media reports suggesting U.S. and Chinese officials appeared serious enough to clinch a partial trade deal by considering rolling back more tariffs than initially said.
Pioneer Natural Resources (NYSE:PXD) Chief Executive Scott Sheffield, meanwhile, said he expects the Permian Basin, the top U.S. shale field, to “slow down significantly over the next several years.” “I don’t think OPEC has to worry that much more about U.S. shale growth long term,” Sheffield said on Tuesday on a call with analysts, Reuters reported.
WTI prompt month (DEC 19) was up $0.69 on the day, to settle at $57.23/Bbl.
NG prompt month (DEC 19) was up $0.041 on the day, to settle at $2.862/MMBtu.
“The overwhelming tendency to push the oil market up continues, and it’s aided this time by another stock market high, continued hopes for a positive U.S.-China outcome and indications that output from key shale patches may be weakening,” said John Kilduff, founding partner at New York energy hedge fund Again Capital. < FINALLY THE "EXPERTS" are noticing that with the active drilling rig count falling week after week U.S. shale production growth has STOPPED.
Wall Street’s best-known stock index, the Dow Jones Industrial Average, hit all-time peaks for a second straight session on Tuesday before consolidating gains after media reports suggesting U.S. and Chinese officials appeared serious enough to clinch a partial trade deal by considering rolling back more tariffs than initially said.
Pioneer Natural Resources (NYSE:PXD) Chief Executive Scott Sheffield, meanwhile, said he expects the Permian Basin, the top U.S. shale field, to “slow down significantly over the next several years.” “I don’t think OPEC has to worry that much more about U.S. shale growth long term,” Sheffield said on Tuesday on a call with analysts, Reuters reported.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group