Oil Price - for week ending March 1
Posted: Fri Mar 01, 2019 9:34 pm
BMO Capital Markets: "The WTI market had a steady decline throughout the day with a high at 10am ET of 57.58 and a low of 55.57 at 12pm ET to finally settle at 55.80. Crude drilling slowed in the U.S. this week as explorers restrain spending. Drilling was reduced to a 9-month low as companies affected by the crude-price drop late last year restrained spending. Working oil rigs fell by 10 this week to 843 according to Baker Hughes, the lowest since early May. Venezuelan crude exports fell below 1MMbpd in February, the lowest since at least January 2017, as more barrels were put on floating storage amid the country’s struggles to find oil buyers post-sanctions according to Bloomberg."
My take is that WTI will flop around in the $55 to $58 range until April when we should see a steady decline in crude oil inventories as refineries ramp up to meet summer demand for transportation fuels. It Trump can reach an agreement with China to end the "Tariff War", I believe WTI will move into the $60 to $65 range. Regardless, everything points to higher oil prices this summer.
My take is that WTI will flop around in the $55 to $58 range until April when we should see a steady decline in crude oil inventories as refineries ramp up to meet summer demand for transportation fuels. It Trump can reach an agreement with China to end the "Tariff War", I believe WTI will move into the $60 to $65 range. Regardless, everything points to higher oil prices this summer.