Energy Prospectus

"We are looking for more drawdown in oil supply this week as the great rebalancing is underway. It will be just a matter of time and we will see many start to raise their oil price forecast soon after they just lowered them." - Phil Flynn

Read: https://www.investing.com/analysis/oils ... -200204592

IMO the "Right Price" for WTI is in the $55 to $65 range. As long as OECD inventories keep falling, the price of oil should drift up to that range. Oil is the most actively traded commodity in the world. The Bulls and Bears will fight it out all the way up. Just remember that oil price cycles have a long history of over-shooting the mark. Supply & Demand are rarely in balance for long.

This is good news for Devon Energy: Canadian producers are having a better time lately because of falling production in Latin America. Declining heavy crude production in Venezuela, Colombia and Mexico is opening up space for Canada. As a result, the price for Western Canada Select (WCS) has climbed, putting it at its smallest discount to U.S. benchmark prices ever recorded. The discount would likely vanish if the U.S. actually implemented oil-related sanctions on Venezuela.