WTI flopped around today and finished closed to where it started. Lots of news will impact trading on Wednesday.
Will OPEC do anything?: Oil traders focused on a special meeting of the Organization of the Petroleum Exporting Countries and non-OPEC members later in the day. A meeting of OPEC and non-OPEC oil market experts in Vienna may shed further light on the group's position of maintaining production at current levels as prices remain muted. The cartel invited eight non-member countries, including Russia, for talks on the market. OPEC's own meeting to set policy is not until December 4. My guess is that nothing really comes of this meeting, but it is a good sign that they are talking about it.
API and EIA will report their weekly crude oil storage numbers on Wednesday. WAGs at best, but they do move the markets.
Oil Prices - October 20
Oil Prices - October 20
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil Prices - October 20
Saudi Arabia
“Their strategy is still working for them,” said Miswin Mahesh, an analyst at Barclays Plc in London. “It means pain now, but in the medium-to-long term they will reap the fruits of a more balanced market, moderated shale supplies, growing demand for oil and ultimately a higher price.”
While cratering prices and historic cutbacks in drilling have taken their toll on the U.S., OPEC members have also paid a heavy price. A year of plunging government revenues, growing budget deficits and slumping currencies has left several members grappling with severe economic problems. The fact that the U.S. oil boom kept going for about six months after the group’s November decision also means OPEC has so far succeeded only in bringing the market back to where it started.
“It’s taken a hell of a long time and it will continue to take a long time -- U.S. oil production has been more resilient than people thought,” said Mike Wittner, head of oil markets research at Societe Generale SA in London. “The bottom line is the re-balancing has begun.”
For the complete article
http://www.bloomberg.com/news/articles/ ... its-tracks
“Their strategy is still working for them,” said Miswin Mahesh, an analyst at Barclays Plc in London. “It means pain now, but in the medium-to-long term they will reap the fruits of a more balanced market, moderated shale supplies, growing demand for oil and ultimately a higher price.”
While cratering prices and historic cutbacks in drilling have taken their toll on the U.S., OPEC members have also paid a heavy price. A year of plunging government revenues, growing budget deficits and slumping currencies has left several members grappling with severe economic problems. The fact that the U.S. oil boom kept going for about six months after the group’s November decision also means OPEC has so far succeeded only in bringing the market back to where it started.
“It’s taken a hell of a long time and it will continue to take a long time -- U.S. oil production has been more resilient than people thought,” said Mike Wittner, head of oil markets research at Societe Generale SA in London. “The bottom line is the re-balancing has begun.”
For the complete article
http://www.bloomberg.com/news/articles/ ... its-tracks
Re: Oil Prices - October 20
U.S. oil production peaked in April, 2015 in the 9.7 to 9.6 million barrels per day range. Today it is approximately 9.0 million barrels per day and it will continue to fall (no matter what oil prices do) to under 8.5 million barrels per day by April, 2016.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group