Oil Price - Dec 19

[dan_s]

The strong U.S. dollar will keep pressure on oil price.

Go to this chart ( http://www.marketwatch.com/investing/index/dxy/charts ) and run a 4-year weekly chart. It will show you that the strong dollar is responsible for at least $20/Bbl of the decline in oil prices since early 2014.

The combination of lower completed well costs and much improved well results, make well-level economics in the Tier One areas of the shale plays today the the same at $60/Bbl WTI pricing as they were at $90/Bbl WTI in early 2014.

[dan_s]

Nigeria: As reported by Reuters, striking workers have shut down U.S. oil major Exxon Mobil's (XOM-NC) Nigeria headquarters in Lagos after more than 100 employees were fired, a labor union said on Friday. Exxon Mobil was not available for immediate comment.

Venezuela: Security forces have arrested more than 300 people during protests and lootings in recent days, over the elimination of Venezuela's largest currency bill, Reuters reported on 12/18/2016. President Maduro pulled the 100 bolivar note this week before new bills were in circulation, creating a national cash shortage on top of the brutal economic crisis overshadowing Venezuelans' Christmas and New Year holidays. The detainees include leaders and members of the opposition Popular Will and Justice First parties, Maduro said on state TV, accusing them of following U.S. instructions to incite chaos.

These two OPEC members have SERIOUS problems.